The plan would affect approximately 30 employees, primarily in administrative and technical roles.
CFL attributes its financial challenges to a combination of factors, including unfavourable market conditions, a stagnant upstream market for technologies like 5G networks and autonomous driving, heightened competition from Asia in the high-quality copper product market, a 20% decline in international sales in 2022 followed by a 10% decrease projected for 2023, and escalating electricity expenses. These adverse circumstances have led to “significant financial losses” since 2022.
The company had previously informed its staff and trade union representatives in July that it would not be renewing fixed-term contracts due to the economic downturn. In light of the ongoing challenges, CFL’s management has deemed the redundancy plan as necessary to safeguard the overall competitiveness of the company’s activities within “an increasingly difficult international environment.”
“Faced with this difficult situation, CFL’s management remains committed to maintaining dialogue with employees and trade union representatives in a spirit of mutual respect,” the press release concludes.
