The main goal is to maintain financial stability
Magyar Suzuki Corporation is forced to implement cost reduction measures
The recent changes in the world market situation and the dramatic decline in sales force Magyar Suzuki Corporation to implement cost reduction measures, and in line with that, to reduce its workforce. In the present situation caused by global recession, Magyar Suzuki's measures serve to maintain the financial stability of the company and keep as many jobs as possible.
Due to the global financial and economic crisis and worsening market conditions, the sales figures of Magyar Suzuki Corporation dropped dramatically. Consequently, to adjust the plant's output to the demand on the market, a reduction of the production became necessary. Currently, the company expects to produce 210,000 cars in 2009, but this figure may change, depending on sales figures. In order to assess the situation as correctly as possible, and to make the best possible decisions, in the forthcoming months Magyar Suzuki Corporation will analyse the processes on the market very closely, and review its production plan on a monthly basis.
Like many other multinational players of the market, Magyar Suzuki will be forced to make hard decisions. As a key player of the Hungarian market, and a company producing 10% of Hungary's GDP, the management of Magyar Suzuki Corporation plans to implement several changes aimed at cost cutting, with the primary aims of maintaining financial stability and keeping as many jobs and supplier contracts as possible.
As part of the cost cutting measures, starting December 8th, the company returned to its earlier system of production in two-shifts. Due to this change in production, the company is forced to make 1,200 employees redundant.
Magyar Suzuki Corporation worked out the conditions of the dismissals in agreement with the Works Council. Meeting its legal obligation, in the first place, the company will disclose the information regarding the dismissals with those affected by this large scale measure. Magyar Suzuki Corporation will make public the details of the conditions of the dismissals only after the employees have been informed.
As part of the cost cutting measures, the company will rationalise its system of financial support for commuters. In the past few years, on its own decision, Magyar Suzuki Corporation offered financial compensation to employees commuting from more than 30 kilometres. In the present situation, the company can meet only its obligations stipulated by the law, which means that its bus service will operate within a circle of 30 kilometres from the plant.
Magyar Suzuki Corporation keeps its employees updated about the changes, and will publish further information after the details of the dismissals have been disclosed inside the company.
