Grundfos, the global provider of pump systems to the food and beverage industry, has announced that it is to cut some 250 staff from its payroll in the group's Danish production division.
A company spokesman said: "Due to reduced order intake as a result of the general uncertainty that has been influencing world economy in recent weeks, further intensified by the war in Iraq, management in Grundfos, the pump group's Danish production company, has decided to reduce the number of staff by 250. Over the past few weeks stocks have been increasing and staff have been asked to phase out outstanding off-hours."
Grundfos managing director Lars Grundfos added that he hoped the cutbacks would be a temporary situation and that he hoped to offer the same staff alternative work in the future. However, he also said that this would depend on whether the general situation improved and if orders started to come in again.
The company reported that the reduced order intake has been particularly acute in the Danish factory, partly due to reduced sales in the countries close to the Iraqi war zone, such as Saudi Arabia, Dubai, Turkey and Greece, as well as the all important American market.
On the other hand, the company reported that things are going better in other parts of the world, with markets in South East Asia remaining reasonably buoyant. Trying to maintain a positive outlook, the company also said that it expects improvements in the situation after a clarification of the situation in Iraq is reached, which the group hopes will allow it to achieve the general goals of 2003.