Electronics Production |
End of RIM orders behind job cuts at Flextronics, Hungary?
Local media are reporting that RIM will stop producing Blackberrys at Flextronics' Zalaegerzeg, Hungary plant - a likely cause for the recently reported 600 job cuts at the factory.
Local media reported last Thursday that jobs would be cut at the Flextronics factory, however the company did not elaborate on the reasoning for the cuts. At the time the company said the cuts were the result of routine reviews of efficiency.
Portfolio.hu reports that workers have revealed that a reduction in orders from RIM is the real reason behind the cuts. From October onwards, the Blackberry phone will no longer be produced in Hungary, leaving workers with very little to do. The workers said that two units are already virtually standing still, due to the reduced work orders from RIM.
Nearly 8000 worked at the plant in Zalaegerzeg as of last August.
