EMCC European Monitoring Centre on Change

Flextronics

Company/Organisation:
Flextronics

Geographic Location

Country: Denmark
Region: Nordjyllands amt
Location of affected unit(s): Pandrup

Company

Sector: Manufacturing
Manufacture of computer, electronic and optical products
26 - Manufacture of computer, electronic and optical products
Number Employed: 1500

Employment Effects

Announcement Date: 01-08-2003
Planned Job Reductions min: 1024
Planned Job Reductions max: 1224
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-09-2003
Direct Dismissals: 1024

Additional Information

Flextronics produces mobile telephony parts for Siemens. Due to Siemens decreasing market shares in the sector, Flextronics has started a restructuring programme. On August 1 2003, 470 contractual and temporary employees were fired. On August 26, 54 of the remaining salaried employees were dismissed, approximately 1,000 were left. In January 2004, Flextronics stopped production for Siemens at its Pandrup plant. Orders were moved within Flextronics International network of factories in countries where labour is cheaper. This meant a further dismissal of 500 to 700 employees. On 27 January 2004 the Minister of Employment sent a press release announcing that special measures will be taken to find new jobs or special training for the redundant employees. An earmarked amount of funds will be spent in cooperation with the regional Public Employment Service. On 26 March 2004, Flextronics announced further redundancies of a 100 salaried employees.