Dunaferr to lay off 1,500

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Hungarian steel maker ISD Dunaferr, which was privatized by Ukraine-based steel company ISD Donbass in 2004, will soon lay off 1,500 workers, in line with earlier plans, the management told MTI news agency on Monday.

The decision on the staff cuts came about due to Dunaferr’s losses which are mainly related to its low operating efficiency compared to its competitors. Oleg Mkrtchan, chief executive of ISD Donbass said in a letter dated 9 August that over the past two years ISD Dunaferr incurred losses of HUF 50 billion (approximately $224 million), “as a consequence of the low operating efficiency compared to our competitors,” as quoted in Hungary-based business website Portfolio.

Management will launch the official procedures to this end by 15 August. At the end of June ISD Dunaferr had 7,522 employees, including 6,837 people on its headcount and 685 temporary workers.

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