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Dunaferr announces major layoffs

Manufacturing

Steel manufacturer Dunaferr announced it will cut the number of its employees by 350 by December 31, 2020, says a press release sent to the Budapest Business Journal.

The company cited as the reasons behind its decision the tough economic situation in the European steel industry, a slowdown of the global economy, decreasing demand and product prices, as well as the burden of environmental regulations imposed by the authorities and the EU.

The layoffs follow a series of alternative measures by Dunaferr, which were made to avoid axing jobs. The company tried to reschedule projects, decrease operating costs and overtime, and stop hiring new employees, but to no avail, it says.

Even so, Dunaferr argues that reducing the headcount is a decision that is unavoidable to ensure the firmʼs stable, long-term operation. The press release adds that the steel company hopes the current market conditions are only temporary, and that further emergency measures can be avoided.

The company adds that it will try to help affected workers as much as possible, offering them other positions which are currently free or occupied by temporary workers. If an employee refuses such an offer, the company says it will offer a dismissal fee or help through its foundation, meaning financial support for a year, as well as help to find another job via mentoring, training, or other assistance.

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