Automotive supplier announces more job cuts
Industrial group Rieter, hard hit by the economic crisis, has said it will lay off a further 1,500 employees – or 12 per cent of its workforce – by the end of 2010.
In a statement, Winterthur-based Rieter, a supplier to the textile and automotive industries, said the slump in these sectors had resulted in a 50 per cent drop in sales in the first half of this year to SFr899.8 million ($831.5 million).
The concern announced a SFr145.5 million loss, with orders down SFr700 million or 46 per cent to SFr840 million.
"Although the trend of business improved in the second quarter, Rieter does not believe that the volumes achieved in previous years will be equalled again soon," the group said.
"Restructuring and cost-cutting efforts are therefore being resolutely pursued."
At the end of June, the Rieter Group employed a workforce of 12 617, which was 18 per cent smaller than the year earlier.
The company also introduced short-time working, with about one in every four full-time employees only on the job on average 40 per cent of the time.
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