A hard blow for Magna Steyr employees: On Monday, 200 Magna Powertrain employees at the Lannach site were reported to the AMS for dismissal. It is the continuation of strict measures that have to be taken due to the poor order situation.
It’s more bad news for car giant Magna: After serious setbacks in orders for electric cars, layoffs are now on the way. 200 employees at the Magna Powertrain site in Lannach, Styria, were reported to the AMS on Monday for job losses. The employees have already been informed.
The job cuts at the transmission and drive system manufacturer did not necessarily come as a surprise. Measures were announced last year; in April of this year, 500 employees had to leave the Graz plant due to the poor order situation.
“Destruction of the company location by the ÖVP and the Greens”
The weakening economy and the less successful trade with electric cars are the cause of this. The engines for Fisker were supposed to be produced in Lannach, but the electric car company went bankrupt. Engines for the electric G will continue to be produced.
Mario Kunasek, regional party chairman of the FPÖ Styria, attributes the layoffs to the “destruction of the company site by the ÖVP and the Greens”. According to ‘Kurier’, insiders at Magna Powertrain suspect that a total of 1,000 jobs could be cut at the subsidiary’s six locations.
There is also speculation that as many as 2,500 of the 7,000 jobs at Magna Steyr in Graz are at risk. While press spokesman Rej Husetovic confirmed the 200 redundancies, he denied that there were any more vacancies. But there is no sign of a sigh of relief for the economy yet.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
