Flextronics International Ltd. (Nasdaq: FLEX), which produces electronic components, is reducing operations at its Arad plant and plans firing about 100 employees in the coming weeks. Sources inform "Globes" that in the past few days the company has begun implementing streamlining, which involves moving some of its activities from Arad to Migdal Ha'emek in order to reduce costs. Electronics industry sources said that management has notified employees in the past few days that they are losing their jobs and in the coming weeks the number of layoffs will rise to a total of about 100.
Flextronics has 350 employees in Arad manufacturing hardware components mainly for Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) and Motorola Solutions Israel Ltd. Many of the employees of the Arad factory were previously employed by Motorola, which sold the plant to Flextronics in 2011. Sources close to the subject say that one of the conditions of the deal was not harming the position of employees following the changeover of owners.
Senior figures in the electronics industry explained that the step being taken by Flextronics management is necessary because of the weakness of the dollar in recent years.
The company has 160,000 employees worldwide and is one of the world's largest electronics components manufacturers.
Published by Globes [online], Israel business news - www.globes-online.com - on June 10, 2013
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