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Thursday, November 23, 2006

Flextronics Reduce Staff

Obviously it is impossible for me to comment on individual cases, and the reasons why Flextronics lost their order with the 'important client' which means that 30% of the 2,000 odd workforce will now be laid off. I would simply say that if you look at the comparatively high value of the forint, and take into account the rather high rate of inflation, then this type of problem is only to be expected.

Flextronics International Ltd., the world's largest manufacturer of custom-made electronics, is firing about 30% of staff at one of its four Hungarian plants after losing a major client.

About 2,000 permanent and temporary employees currently work at the factory in Nyiregyháza, northeast Hungary, Péter Papp, the director of human resources for eastern Europe, said in a telephone interview today. “We have hired more than 1,000 workers in the past six months at the plant and with this major client taking away production we need to cut jobs,” Papp said. “The dismissal of 590 by early February is the worst-case scenario because we'll try to help them find jobs within the company.” Flextronics also has plants in Tab, southwest Hungary, Zalaegerszeg in the west and Sárvár in the northwest. The company will employ just under 10,000 after the Nyiregyháza dismissals, Papp said, adding the company will remain one of the Hungary's 10 largest employers. Papp declined to identify the client that canceled its contract or say which product Flextronics made for it, except that it was sold in large volumes around Christmas. Napi Gazdaság reported the job cuts news earlier today.

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