Tungsram avoids layoffs with pandemic action plan
Image by Remus Rigo / Shutterstock.com
Hungarian lighting company Tungsram announced on Monday to its employees that it would be implementing a "job protection plan" in response to the coronavirus outbreak to help it avoid layoffs because of the pandemic, Hungarian news agency MTI reports, citing a statement by chairman-CEO Jörg Bauer.
Image by Remus Rigo / Shutterstock.com
According to the plan, white-collar workersʼ working hours will be cut by 20% from May to July and they will cancel a wage raise originally scheduled for April. White-collar workers account for 25% of the payroll.
The salary of the top management meanwhile will be cut by 25% on average and non-wage compensation will be scrapped for the year for all employees.
Tungsram estimates that its revenue from manufacturing and marketing lighting equipment could fall by 30-40% in Q2 but the impact of the pandemic should be felt across the entire year. Sales could be back on track by the start of 2021, said Bauer.
The company has almost 4,000 employees and it exports 95% of its products to 110 countries. Tungsram operates five factories in Hungary and has 1,600 suppliers.
Two years ago, General Electricʼs lighting business in Europe, the Middle East, Africa and Turkey, as well as its global automotive lighting business was acquired by its chief executive in Hungary Jörg Bauer.
He gave the business back its old name, Tungsram, a global Hungarian brand that is still synonymous with lighting products in many parts of the world, more than a century after its establishment.
MOL Shareholders Approve Dividend of Around HUF 250/Share
Gov't Awards HUF 6.5 bln of Subsidies to SMEs in Underdevelo...
Poland Retail Sales Growth Stable in March
Liz & Chain Rooftop Bar Debuts Sustainable Cocktails
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.
