Switzerland's Lonza to delay layoffs announcement to next year

26 November 2012 09:33  [Source: ICIS news]

SINGAPORE (ICIS)--Lonza is postponing announcement of any job cuts until next year and will work towards keeping the number of layoffs low as much as possible, after holding discussions with labour associations and unions, the Swiss firm said on Monday.

For individual work contracts, layoffs will not be announced before January 2013, while for collective work contracts, layoffs will not happen before March 2013, based on the social plan the company has agreed with employee representatives, Lonza said in a statement.

“The negotiated plan allows that the number of layoffs can be kept as low as possible through early retirements and internal vacancies,” Lonza said.

Under the plan, an operational employment centre will also be set up for internal transfers and potential layoffs, it added.

On 31 October, the company had said that it will cut a total of 500 jobs – 400 in Visp, Switzerland – over 24 months as part of its cost reduction program.

“Reducing the manufacturing costs in Switzerland has become necessary as over the past few years the profitability of the production site Visp has continuously decreased due to the exchange rates and Asian competition as well as raw material and energy prices,” Lonza said.

By: Surinder Malhi
+65 6780 4327

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