April 23 (SeeNews) - Slovenia-based white goods manufacturer Hisense Gorenje, controlled by China's Hisense Group, plans to lay off 2,200 employees in Slovenia and abroad by the end of this year, as the ongoing coronavirus crisis has worsened its financial state, the head of the company's trade union said.
The plan is to lay off 1,000 people in Slovenia - 700 from the company's main manufacturing plant in the northeastern town of Velenje and a further 300 from the Ljubljana-based administrative unit, Hisense Gorenje Europe, Zan Zeba told state broadcaster RTV Slovenija late on Tuesday. A video file with his statement is uploaded on the broadcaster's website.
Zeba said that even though the employees had expected some negative effects from the coronavirus crisis, the news about the planned layoffs took them by surprise, considering the government's stimulus programme to support the domestic economy and help preserve jobs amidst the pandemic.
The announcement was made at a meeting of the company's management with representatives of the workers and trade unions on Tuesday, RTV Slovenija said.
Production in Velenje was suspended for three weeks because of the coronavirus pandemic and has not yet returned to full capacity, the broadcaster noted.
In June 2018, when Hisense took over Gorenje, the Slovenian-based group employed 11,061 workers, while at the beginning of April 2020 the number has dropped to 9,302, RTV Slovenija said.
Gorenje has several production sites located in Slovenia, Serbia and the Czech Republic. Around two-thirds of all employees are based in Slovenia.
In December, local media reported that Gorenje expected to post a 40 million euro ($43 million) loss in 2019 before swinging to a 30 million euro profit in 2020, with the main challenge ahead being improving efficiency and competitiveness.
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