German automotive wiring manufacturer Leoni has announced plans to reduce the workforce at its factory in Bistriţa, central Romania, two months after it closed a smaller production unit in the country. 

Leoni will cut its workforce by 10%, impacting approximately 360 employees out of its 3,600-strong team. 

This decision is driven by a significant drop in orders for electric vehicles (EVs). 

"In the economic context generated by the drastic decline in orders for electric vehicles, Leoni Bistriţa is compelled to take measures to sustainably consolidate and stabilize the operations of its Bistriţa plants. Following a detailed analysis of the current economic and operational situation in the electromobility area and after informing the company's management and the union organization, it was decided to reduce the number of employees by up to 10%," the company explained in its announcement on Monday, July 22, Ziarul Financiar reported. 

This move is deemed necessary to maintain long-term competitiveness and viability. 

This workforce reduction follows the company's announcement in May regarding the closure of its Luduş plant in Mureş County, which had 200 people. At that time, Leoni offered relocation opportunities to those employees willing to move to Bistriţa-Năsăud, where there was a need for more workers. 

The company's recent decisions reflect broader challenges facing the global automotive industry, including disrupted supply chains and decreased production volumes due to geopolitical tensions. 

Additionally, the transition from gasoline and diesel engines to hybrid and electric ones has been hampered by reduced subsidies for EVs across Europe, leading to lower sales.

iulian@romania-insider.com

(Photo source: Facebook/LEONI Wiring Systems Bistrița)