Elektrobit Group Oyj - ELEKTROBIT (EB) STARTS PERSONNEL NEGOTIATIONS TO TEMPORARILY LAY OFF 150 EMPLOYEES AT THE MAXIMUM, TARGETING COST SAVINGS OF ABOUT EUR 1.5 MILLION IN WIRELESS BUSINESS SEGMENT
August 08, 2013
ELEKTROBIT (EB) STARTS PERSONNEL NEGOTIATIONS TO TEMPORARILY LAY OFF 150 EMPLOYEES AT THE MAXIMUM, TARGETING COST SAVINGS OF ABOUT EUR 1.5 MILLION IN WIRELESS BUSINESS SEGMENT
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Free for publication on August 8, 2013, at 8.00 am. (CEST+1)
ELEKTROBIT (EB) STARTS PERSONNEL NEGOTIATIONS TO TEMPORARILY LAY OFF 150 EMPLOYEES AT THE MAXIMUM, TARGETING COST SAVINGS OF ABOUT EUR 1.5 MILLION IN WIRELESS BUSINESS SEGMENT
Elektrobit (EB) has today started personnel negotiations in Wireless Business Segment to adjust its cost level to correspond the weakened demand outlook for the rest of the year. With temporary layoffs EB aims at EUR 1.5 million cost savings, which are expected to materialize mainly during the fourth quarter.
In order to achieve the targeted cost savings, EB plans to temporarily lay off 150 employees at the maximum, for 90 days at the maximum, part-time or full-time. The negotiations concern employees working in Elektrobit Wireless Communications Ltd. Currently 548 employees are working in Wireless Business Segment.
The underlying reasons for the planned layoffs are the decreased order volume for the second half of 2013 from a large customer of EB, and delays in some special terminal projects.
The weakened demand outlook for the rest of the year and the planned cost savings resulting from the temporary layoffs have been taken into account in the outlook for 2013 given today in the interim report January-June 2013. The interim report January-June 2013 is available in the company's web page at www.elektrobit.com .
Oulu, August 8, 2013
Elektrobit Corporation
Jukka Harju
CEO
Further information:
Hannu Huttunen
President of the Wireless Business Segment
Tel. +358 40 344 3507
Distribution:
NASDAQ OMX Helsinki
Principal media
Elektrobit (EB)
EB creates advanced technology and turns it into enriching end-user experiences. EB is specialized in demanding embedded software and hardware solutions for wireless and automotive industries. The net sales from continuing operations in 2012 totaled MEUR 185.4. Elektrobit Corporation is listed on NASDAQ OMX Helsinki. www.elektrobit.com
