GE layoff numbers set for Hungary

Deals

Following the recent announcement that it would lay off 12,000 employees worldwide, GE has now made public its plans for Hungary. Redundancies at the Hungarian business unit will be close to 8% of the workforce.

GE Power, the GE unit at Veresegyház (31 km northeast of Budapest),  focusing on producing gas turbines for small- and medium-sized power plants, will lay off about 140 employees, director Gergő Lencsés announced yesterday. The move is necessary because of the worldwide drop in demand for GE Power products and services, business daily Világgazdaság reports.

Production of power plant installation is stagnating worldwide and is decreasing in Western Europe. Prices are significantly eroded on the market, mainly because of competitors from Asia. In Q3, orders at GE Power have decreased by 19% and revenues by 4%. Lencsés told Világgazdaság that GE expects a stagnating or decreasing demand for the next three years and is considering the current moves a rightsizing rather than a layoff.

GE has developed a new strategy, which focuses on three industrial business units, which are all present in Hungary. These are GE Power at Veresegyház, which contributes 4% to Hungarian exports, GE Aviation and BHGE (formerly GE Oil & Gas). Hungary is playing a central role in GE strategy, Lencsés said.

ADVERTISEMENT

Farm, food industry confidence improves slightly in Q2 Analysis

Farm, food industry confidence improves slightly in Q2

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.