GE Hungary used the full amount of job-preservation subsidies it was eligible for to pay its workers, the company told MTI, after a television news program reported the company had won HUF 650 million in job-preservation subsidies, but still announced 2,570 layoffs over two years.
GE Hungary acknowledged that it won HUF 650 million in job-preservation subsidies in the spring to be used in April-July, but it used only HUF 198 million of the amount in the end as orders picked up and fewer workers were put on a four-day work week. The entire HUF 198 million went toward wages, the company said.
GE Lighting's head for Europe Phil Marshall announced on October 28 that GE Hungary planned to lay off 2,570 people from its lighting division in Hungary over the next two years. The division currently employs 7,500 in Hungary. The layoffs are the result of a directive on low-efficiency lighting and the global recession, he added.
The layoffs will affect only production of traditional, low-efficiency lighting; GE will not pull its lighting production out of Hungary, he said. (MTI – Econews)