FACTBOX-E.Europe job losses mount in economic downturn

July 22 | Wed Jul 22, 2009 8:04am EDT

July 22 (Reuters) - Industry in Central and Eastern Europe has been hammered by a fall in orders because of the global economic downturn, reversing years of strong growth and causing big cuts in jobs.

The following are examples of major layoffs in the region's countries, with developments in unemployment.

BULGARIA

Metals company Radomir Metals laid off 600 of 1,100 staff because of a drop in demand. Paper producer Mondi (MNDJ.J) halted production at a paper mill, making about 500 people redundant.

Steel company Stomana Industry, part of Greek group Sidenor SIDr.AT, has dismissed about 300 workers. Economists and trade unions say unemployment, currently at 7 percent, will reach double digits by the end of the year.

Bulgaria's government spent about 7 million levs ($4.99 million) in March to save some 16,000 jobs by paying temporary compensation to employers who switched workers to part-time work instead of sacking them, although the results are not yet clear.

CZECH REPUBLIC

New World Resources NWRSsp.PR, owner of the Czech Republic's largest hard coal mines, plans to cut up to 3,000 jobs by the end of the year because of weak demand in the steel sector. [ID:nLB170753]

ArcelorMittal Ostrava (ISPA.AS) cut 950 of its 9,000 workers in the first quarter because of falling orders that have caused a reduction in its capacity utilisation to 35 to 45 percent. Since January the Czech steel group has had on average 100 to 700 employees staying at home on 70 percent of their salary.

A survey in February by the Czech Chamber of Commerce found 45 percent of firms plan to cut jobs this year.

Unemployment has risen to a two-year high of 8 percent, with the number of jobless rising by 160,000 in the past year. The central bank forecasts the rate hitting 9.9 percent in 2010.

HUNGARY

Japan's Suzuki Motor Corp (7269.T) said in November it would sack about 1,200 of its 5,523 workers at its Hungarian unit by the end of February because of a sharp drop in orders.

Taiwan's Foxconn (2038.HK), another major manufacturer, said it would lay off 1,500 workers, more than half of its workforce.

Hungarian steelmaker Dunaferr has said it will lay off 400 workers and offer early retirement to several hundred more, bringing its headcount down to 7,200.

Japanese car parts supplier Denso Corp (6902.T) has said it will lay off up to 800 workers at its Hungarian plant by the end of September.

Steel mill DAM is under liquidation, and laying off its remaining approximately 700 employees.

The central bank forecasts unemployment rising above 11 percent, and expects 180,000 to lose their jobs in 2009-2010, about 5 percent of the workforce.

From March to May, the unemployment rate was 9.8 percent.

POLAND

Poland's largest telecoms group TPSA TPSA.WA, employing 26,000 people, is running a voluntary redundancy programme for up to 4,900 workers in 2009-2011.

Polish Bank BPH BPHW.WA, a unit of General Electric's (GE.N) GE Money, posted a net loss in the first quarter. The bank has decided to lay off almost 1,000 of its 4,761 staff.

A March survey by a business lobby group found 20 percent of Polish companies planned redundancies.

Unemployment eased slightly to 10.8 percent in May, with 1.68 million jobless, although government forecasts see the rate rising to as much as 13.5 percent in December.

ROMANIA

Since the end of October, dozens of leading Romanian manufacturers including Renault's Dacia plant (RENA.PA) and the Romanian units of ArcelorMittal (ISPA.AS) temporarily cut production and sacked workers or sent them home temporarily.

However, a 20-billion-euro ($28-billion) package from the International Monetary Fund, the European Union and other foreign lenders, has boosted confidence, slowing job cuts, analysts say.

Unemployment has risen by only 0.1 percentage points a month since March, but the rate reached a three-year high in May at 5.8 percent, from a 16-year low in July 2008.

Labour Minister Marian Sarbu said he expected unemployment to reach no more than 7 percent, or 620,000 people, at the end of the year, less than earlier estimates.

SLOVAKIA

Slovakia's unemployment rate rose to 11.39 percent in May, the highest since March 2006, from 10.92 percent in April.

The government of left-wing Prime Minister Robert Fico has allocated 332 million euros to support the economy with measures such as temporary reductions in payroll taxes for businesses.

Despite rising unemployment, the jobless rate is still about half the levels seen seven years ago.

SLOVENIA

Household appliances maker Gorenje (GORE.LJ), Slovenia's second-largest exporter which employs 11,000, said it would cut about 550 jobs this year because of a fall in sales.

Slovenian car producer Revoz, a subsidiary of France's Renault (RENA.PA), cut 200 jobs out of 3,200 in November. In April it created 150 new jobs after a pickup in demand for small cars.

Unemployment rose to 8.9 percent in May from 7.0 percent in December. (Compiled by Jason Hovet; editing by Andrew Dobbie)

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