October 29, 2009, 10:03 CET

GE Hungary announces plans to lay off more than

2,500
By MTI-ECONEWS

GE Hungary plans to lay off 2,570 people from its lighting division in Hungary over the next two years,
GE Lighting's head for Europe Phil Marshall announced in Budapest on Wednesday. 

The layoffs remain a proposal until an agreement with unions is reached, Mr Marshall said.

The layoffs will affect only production of traditional, low-efficiency lighting; GE will not pull its lighting
production out of Hungary, he said. The layoffs are the result of a directive on low-efficiency lighting
and the global recession, he added. 
Low-efficiency lighting is being phased out in the EU by 2013, under a directive from Brussels.

Recently completed investments will allow GE Hungary to boost output of modern, energy-efficient
lighting, Mr Marshall said. Boosting output further would require more investments, about which a
decision has not yet been made, he added.

GE Hungary plans to lay off 1,300 of the 1,750 people at its base in Nagykanizsa (SW Hungary). Only
production of profitable car lights and compact fluorescent bulbs will continue. Production of industrial
screens in the city will also be stopped, resulting in 128 layoffs. GE Energy moved production of the
screens to Nagykanizsa just a year earlier.

GE employees said the layoffs in Nagykanizsa will be staggered. No layoffs will be made in 2009, but
300 will be made in 2010 and 1,000 in 2011. Industrial screen production will be phased out already
from January.

GE Hungary's lighting division will close only one of its seven bases in Hungary, in Vac, near Budapest,
where 700 people work.

Jozsef Novak of the Tungsram union at GE's plant in Zalaegerszeg (W Hungary) said workers had been
informed 99 of more than 400 staff would be laid off by the end of 2011. Talks with the management
on the layoffs will start on Tuesday, he added.

GE Hungary employs 11,000 people in the airplane, energy, health, water management, lighting and
electronics industries. A further 3,000 people work for Budapest Bank, part of GE Money Bank.

GE has three R+D centres in Hungary.

TAGS:   EMPLOYMENT   FDI   GENERAL ELECTRIC   MANUFACTURING 

 EMAIL ARTICLE
 
  
 ADD A COMMENT
 
 SITE FEED
LATEST NEWS
 Production starts at giant PEZ factory in Jánossomorja
 High financing needs will "force" Hungary back to IMF talks, says City
 ERBD chief advises caution until Hungary shapes mid-term economy policy
 Leier inaugurates €20 million office complex at barracks
 Századvég puts 2010 GDP growth at 0.8%, over government forecast
 Matolcsy says Hungary not to renew IMF loan, bank levy possible in 2012
 Orbán says EU's deficit calculation discriminative
 Government efforts to benefit whole EU, says deputy PM
 Local governments mired in foreign-currency debt
 Hungarian farmers earn more from foie gras
 QSCH investing Ft 1 billion to fill BMW order
 Government says no imminent purchase of MOL stake from Surgutneftegas