The flow on effect of the economic crisis through to the automotive sector’s smaller suppliers is starting to become more evident with Italian premium brake manufacturer Brembo to lay off 1,840 workers in the face of falling demand.
Job cuts will be carried out in order to align production with demand. The company will also adopt tighter spending controls.
In Italy, Brembo has applied to temporarily lay off between 540 and 680 white-collar workers for 20 days between March and May period. The company wishes to draw on funds from the government’s economic stimulus package to fun the temporary lay-offs.
Additionally, Brembo is temporarily laying off between 120 and 1,160 blue-collar workers for varying periods. Outside Italy, restructuring will see 160 job cuts in Mexico, the company said, while there have also been lay-offs in Poland.