Electronics Production |
Kitron to reduce staff number by 250 in 2009
Kitron is planning a reduction of its workforce by 17% from 1470 in December 2008 to 1220 during 2009. The reduction is partly the result of productivity improvements and partly due to the fact that some key customers have lowered their projections. Kitron forecast revenue to drop 10% in 2009 compared with 2008.
"A capacity adjustment is necessary to maintain competitive edge and profitability in a difficult market environment", says Jørgen Bredesen, Kitron CEO.
Out of the total reduction of 250 employees, 170 will be in Norway, 60 in Sweden and 20 in Lithuania. These reductions will be implemented gradually during 2009 in line with the development in activity level. When fully implemented the company will save some NOK 100 million in personnel expenses on an annual basis.
Kitron do not foresee any significant restructuring costs as a result of these measures. It shall be noted that the announced capacity adjustment at Kitron's site in Karlskoga is included in the above numbers. All employee numbers above are expressed as full time equivalents.
