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More job cuts in Europe

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26 April, 2001In the past week alone, Motorola, Ericsson and Moulinex are among multinationals announcing major restructuring and workforce reductions.

EUROPE: Major job losses announced in the past week in Europe affecting thousands of jobs have come from companies such as Motorola, Ericsson and Moulinex.
Ericsson, the Swedish telecommunications giant, revealed on April 20 that it would cut as many as 12,000 jobs worldwide. Some 5,000-6,000 of these job losses are expected in Sweden, mainly in research and development. Mari-Ann Krantz, president of the IMF-affiliated Swedish non-manual workers' union SIF, said that the company's most important asset was its highly-experienced and technically-competent workforce and warned of the risk, when fears of job security prevailed in a company, that the more competent staff might leave first. She hoped that Ericsson management was aware of the possibility of a serious dialogue with SIF to find solutions which would safeguard jobs, because not only the future of the company is at stake but the future of its staff.
Moulinex-Brandt, the French appliance group, announced on April 26 it would proceed with major restructuring plans, cutting 4,000 jobs worldwide, of which 1,500 will be in France. The company, which produces coffee makers, vacuum cleaners and other small household appliances, will close three plants in France, as well as plants in Ireland, Brazil and in Poland, where 1,700 workers will lose their jobs. The IMF-affiliated FGMM-CFDT stated last year, when the Italian Elfi group, which owns Brandt, took over Moulinex, that the takeover was not accompanied by even minimum guarantees for the future and job security. The union will continue its efforts to safeguard as many jobs as possible at Moulinex and Brandt.
The U.S. electronics multinational Motorola has made known its plans to cut 7,000 jobs worldwide, and close its biggest plant in Great Britain, located in Scotland, in six months' time, with the loss of 3,100 jobs. Two other UK plants will also be shut down, totalling another 500 jobs. The general secretary of the Manufacturing, Science and Finance Union, Roger Lyons said that the company had earlier told workers they "did not need a trade union as their jobs were secure!" Unions, workers and politicians strongly condemned the company, which has received approximately £17 million in state aid in the last six years.