Slovenia’s Hisense Gorenje revokes decision on layoffs after securing new orders

Slovenia’s Hisense Gorenje revokes decision on layoffs after securing new orders
By bne IntelliNews July 14, 2020

Slovenia’s home appliances maker Hisense Gorenje decided not to dismiss production workers as initially planned due to the increased number of orders, it said on July 14.

In April, the Chinese owners of Gorenje announced that it will lay off 2,200 employees in Slovenia and Gorenje’s subsidiaries abroad, as the company’s performance worsened due to the coronavirus (COVID-19) pandemic, but in June it lowered the number of redundancies to just over 500.

"The company will use soft methods to reduce the workforce, after the number of orders increased sharply in recent weeks," the company said in the statement.

The orders relate to deliveries in August, September and October, while June was the first profitable month of the year.

"The management of Hisense Gorenje has therefore decided that due to the new business circumstances in the production sector to use soft methods to improve work efficiency," it said.

The increased orders are the result of measures taken by management to strengthen operations, to adapt to the conditions resulting from the new coronavirus pandemic, and to improve business results.

However, the half-year business result of Hisense Gorenje remained negative, and market conditions are still uncertain and volatile, according to the management.

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