Elcoteq reduces staff in Estonia

Elcoteq has decided to initiate procedures with its Tallinn-based personnel regarding compulsory holiday with partial pay and personnel reductions. Some 330 persons will be affected, of whom the majority will be laid off with partial pay.

The exact number of persons involved will be settled after consultation with Labor Inspectorate officials. As manufacturing volumes fluctuate significantly, Elcoteq's policy has been to maintain extensive flexibility in its workforce. As part of the February 2007 Action Plan to improve the company's competitiveness, profitability and cost-efficiency, and because of delays in some customer projects, the company has now decided that the extent of this flexibility should be reduced. Actions already taken to improve operational efficiency also mean that reductions in personnel numbers are now possible. Using the option of compulsory holiday with partial pay maintains the capability of upgrading volumes at short notice while at the same time reducing costs.

The service offering and capabilities of Elcoteq's operations in Tallinn will not be affected by the measures outlined above.

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