EMCC European Monitoring Centre on Change

Zumtobel

Company/Organisation:
Zumtobel

Geographic Location

Country: World

Company

Sector: Manufacturing
Manufacture of electrical equipment
27.4 - Manufacture of electric lighting equipment
Number Employed: 7500

Employment Effects

Announcement Date: 09-12-2008
Planned Job Reductions min: 850
Planned Job Reductions max: 850
Type of Restructuring: Internal restructuring
Employment Effect Start: 09-12-2008
Foreseen End Date: 30-06-2011
Direct Dismissals: 850

Additional Information

Zumtobel, a worldwide leading supplier of integral lighting systems, headquartered in Dornbirn (Austria) is to cut 850 jobs within the next two and a half years, affecting sites all over the world. It is planned to dismiss 425 of the 850 employees by the end of 2008.

The dismissals are due to a significant decline in both turnover and yields in the first half of the business year 2008/9 with no prospect of improvement. Management claimed that increasing labour costs, high costs for the development of LED-activities and negative currency exchange rates have been the main factors for declining profits. In order to be able to flexibly react to falls in demand within the next years, Zumtobel aims to save some € 50 million on labour costs, by reducing its overall workforce from currently 7,500 to around 6,650 by mid-2011.