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German Auto Supplier Leoni Announces Layoffs in Romania

Image credit: Leoni

Leoni, a major German manufacturer of wiring systems and components for the automotive industry, recently acquired by Austrian billionaire Stefan Pierer, is initiating layoffs in Romania. This decision follows the closure of a factory in Luduș, Romania, in May, which affected about 200 employees.

The company, which operates in 27 countries with over 95,000 employees, cites the current economic context, particularly the drastic decrease in orders for electric vehicles, as the reason for these measures. Leoni aims to consolidate and sustainably stabilize operations at its Bistrița factories.

Following a detailed analysis of the current economic and operational situation in the electromobility sector, and after informing the union organization, the company has decided to reduce its workforce by up to 10%. This measure is deemed necessary to maintain the company’s long-term competitiveness and viability.

Leoni Bistrița plans to implement objective evaluation criteria for the layoffs, considering annual performance assessments, company tenure, individual skills and qualifications, and operational needs of each department. Vulnerable categories, such as single parents, will receive additional protection.

The company has expressed its commitment to minimizing social impact and ensuring fair treatment for all employees. Leoni Bistrița will also offer support in finding new employment opportunities for affected staff.

This decision reflects the ongoing challenges in the automotive industry, with Leoni emphasizing the necessity of these measures to build a stable and sustainable work environment for the future.

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