The financial crisis in the past few months, visible in the drop on the construction market and stagnation of the real estate market in 2009, has led major construction material distribution chains to lay off staff, due to a drop in sales. The possible layoff of Arabesque employees comes after the decision in November of another major player on this market, Ambient Sibiu, which announced it will reduce its staff by 8 percent, namely 248 employees. Arabesque presently has 3,500 employees on the local market and another 1,500 in branches abroad, according to the latest data available, and some 1,000 people could be laid off. Contacted by Business Standard, Arabesque’s Marketing Manager, Florina Necula, declared that no decision has been made yet on the layoffs. The company’s representatives declared in December for Money Express that investments to expand the network of commercial centers would cease in 2009. Arabesque was counting on turnover of some €570 million in 2008, up 25 percent from net sales of €450 mln in 2007, due to the expansion of the network of commercial centers nationwide and internationally. The 50 percent drop in sales of new homes and transactions of old apartments, and the postponement or cancellation of several real estate projects last year have negatively influenced growth expected by producers of construction materials, directly affecting also the results of distribution chains. “The policy to lay off staff does not automatically mean store closure. It is rather way of cutting costs. This measure is necessary due to a drop in sales,” according to Dan Olteanu, one of Ambient Sibiu’s shareholders, for Business Standard. (G.S.)
