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© alexey-utemov-dreamstime.com Electronics Production | November 29, 2013

Fewer temporary layoffs than anticipated at EB

The estimated cost savings from temporary layoffs in Elektrobit Corporation's (EB) wireless business segment will be approximately EUR 0.8 million
Elektrobit Corporation (EB) has concluded the measures started on August 8, 2013 to adjust its cost level in its Wireless Business Segment. With these measures, EB estimates to achieve approximately EUR 0.8 million cost savings, which are expected to materialize mainly during the fourth quarter 2013.

The company has temporarily laid off 74 employees full or part time for a maximum of 90 days. The company has decided that no further temporary layoffs will be implemented. Due to the more precise outlook towards the end of the year in Wireless Business Segment, it has been possible to reduce the amount of the temporary layoffs from the maximum amount estimated earlier.

EB started the cost saving measures targeting EUR 1.5 million cost savings in Wireless Business Segment in August 2013 to adjust the its cost level to correspond the weakened demand outlook by temporarily laying off a maximum of 150 employees full or part time for a maximum of 90 days in Wireless Business Segment.

The underlying reasons for the layoffs are the decreased order volume for the second half of 2013 from a large customer of EB, and delays in some special terminal projects.

The reduced need for temporary layoffs and thereafter the more precise estimate of the cost savings will not affect company's outlook for 2013 or Wireless Business Segment's outlook for the second half of 2013.

Currently 510 employees are employed in Wireless Business Segment. The temporary layoffs concern employees working at all EB's sites in Finland, which are Kajaani, Oulu and Tampere.

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