Brembo Temporarily Cuts 1,800 Jobs

While global automakers already received financial support from their domestic governments and are now struggling to revamp sales, parts manufacturers still strive to cope with the recession and turn to the same over-discussed cost-cutting measures. Italian brakemaker Brembo today confirmed it plans to temporarily cut around 1,800 workers at both Italian and overseas facilities, citing the economic downturn as the reason.

According to Autonews citing a company representative, Brembo laid off between 540 and 680 white collars in Italy for 20 days between March and May. In addition, the company temporarily cut between 120 and 1,160 blue-collars starting March while outside Italy, the cost-cutting schedule involves a 160-job cut in Mexico and an unspecified number of layoffs in Poland.

"During the fourth quarter, the global financial crisis directly affected Brembo market segments causing a sizeable decline of passenger cars and light commercial vehicles demand. Most automakers reacted to the market scenario reducing fourth-quarter production and extending the year-end holiday season shutdown,” the company said a few days ago in a statement.

“Brembo reacted to the market slowdown by adopting extraordinary measures with a view to align its production levels to demand; workforce has been reduced in most plants in Italy and in the Group subsidiaries. Furthermore, in Italy Brembo resorted to temporary layoff schemes for the factory workers.”

Just like other companies involved in the automotive sector, Brembo expects even slower sales in the next few months. Brembo currently supplies brake systems for Porsche, Ferrari and a couple of other manufacturers. Sales fell 3.4 percent in the fourth quarter of the last year with figures unveiling a loss of 3.7 million euros.