EMCC European Monitoring Centre on Change

Embraco Slovakia

Company/Organisation:
Embraco Slovakia

Geographic Location

Country: Slovakia
Region: Kosicky kraj; Vychodne Slovensko
Location of affected unit(s): Spiska Nova Ves

Company

Sector: Manufacturing
Manufacture of electrical equipment
27.11 - Manufacture of electric motors, generators and transformers
Number Employed: 2150
Group: Nidec Global Appliance

Employment Effects

Announcement Date: 20-05-2020
Planned Job Reductions min: 200
Planned Job Reductions max: 200
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-07-2020
Direct Dismissals: 200

Additional Information

The Slovak subsidiary of Brazilian producer of compressors and cooling systems Embraco plans to cut around 200 jobs at its factory in Spiska Nova Ves. The planned redundancies are attributed to the long-term lower demand due to the COVID-19 crisis. According to the CEO Marcelo Borba, the factory has been struggling with a rapid fall in orders for over a month and in April and May 2020 it had to suspend its production several times.

The factory has around 2,150 employees and the planned job cuts should secure work and pay for the remaining workers. The company also applied for state subsidies, but this help is not enough to cover all losses. Embraco is part of the Nidec Global Appliance global division.

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