Crompton Greaves plans to axe a third of workforce in Belgium
Crompton Greaves (CG) on Friday said it is planning to cut 260 jobs at its Belgium operations out of total 730 and has initiated consultation process with the Belgian Works Council for the proposed reduction.
New Delhi: Crompton Greaves (CG) on Friday said it is planning to cut 260 jobs at its Belgium operations out of total 730 and has initiated consultation process with the Belgian Works Council for the proposed reduction.
In a BSE filing, the company said the transformer market in Western Europe is facing both, over capacity and price pressure and in this scenario, the downsizing is required to remain competitive and sustainable.
"... It is proposed that CG's Belgium operations be optimised for cost advantages, through administrative cost reduction measures and a right-sizing of its blue collar and white collar workforce.
"Approximately 260 employees are contemplated to be covered under the right-sizing exercise, out of a total of approximately 730 employees," the company said in the filing.
It further said that to carry the exercise, the company has commenced an information and consultation process with the Belgian Works Council as required by the Belgium Labour Regulations.
Crompton Greaves provides electrical products, systems and services for Utilities, Power Generation, Industrial and Consumers. The company, which is part of USD 4 billion Avantha group, has presence in 21 countries and employs more than 15000 persons.
In 2011-12, the company had reported a consolidated net profit of Rs 373.59 crore and consolidated net sales of Rs 11,248.58 crore.
Shares of the company closed on Friday at Rs 121.20 apiece on the BSE, up 1.38 percent from the previous close.