Three counties expected to lay off 9,000 employees

This same source indicated that three quarters of the layoffs will come from private capital companies and 20 percent from state companies. Fields in which employers have so far announced or requested information about layoff regulations are automotive and equipment production, construction, wood processing and furniture manufacturing, the textile industry, and agriculture.  

Some 2,000 employees will lose their jobs in car and equipment factories, over 1,500 in the construction sector, more than 900 in the wood industry, and over 800 in textile factories. According to ANOFM data, the layoff wave forecast for the coming two months will exceed the

number of layoffs made in the first half of the year in the entire economy.

Cristian Parvan, Secretary General of the Association of Romanian Businesspeople (AOAR) said that Romania has begun an adjustment period, in which companies must cut costs, due to the crisis. Romania has had a very low jobless rate for years, considering its economic growth and the fact that many went abroad. “We may face a new wave of layoffs by year-end, considering that the end and beginning of the year are periods of maximum adjustment,” Parvan said.  

“Companies engaged in export will be most affected, as the ratio of industry exports was 80 percent, although companies producing for the domestic market are also experiencing problems,” Maria Grapini, President of Light Industry Employers Association (FEPAIUS), told Business Standard.

The crisis also led to a drop in the demand for steel, so players in this field have announced a downward revision in production, or periods of temporary layoff. ArcelorMittal steel producer estimates a 50 percent drop in production by year-end, while the Mechel group is opting to lay off employees for a limited period. Deputy Manager of the County Agency

for Employment (AJOFM) Iasi, Maria Mihnea, told Business Standard that just 868 employees included in the ANOFM statistics are sure to be laid off by year-end, as companies have already notified the agency. Most companies that lay off people are engaged in a restructuring program, developed since the beginning of the year. In Mures County, only 549 employees will be laid off by the end of the year. “We have received notification only for this number, while remaining layoffs are being discussed,” AJOFM Mures officials said. The crisis also presents an opportunity for companies facing serious financial problems or risking bankruptcy to be acquired, since these can no longer meet their obligations to lenders.

“We are interested in factories located in Bucharest and Timisoara. We are also considering real estate projects that cannot be completed due to a lack of financing,” said Marius Cristescu, President of the Bega group.

‘We may face a new wave of layoffs by year-end, considering that the end and beginning of the year are periods of maximum adjustment Cristian Parvan General Secretary of AOAR