Circuit Foil Luxembourg has announced a social plan affecting around 30 mostly administrative and technical staff.
The Luxembourg-based company, which develops, produces and markets high-quality copper foil, announced that, following a "thorough analysis" of the financial situation over the past months and the market outlook since 2022, its management started the consultation process on Tuesday 10 October 2023 with the staff delegation in view of a social plan affecting some 30 staff members.
Circuit Foil Luxembourg noted that the following circumstances have had a "significant negative impact" on its performance and revenue: a macroeconomic deterioration of the market, a stagnating upstream market (e.g. for 5G networks and autonomous driving), increased and intensified competition in the market for high-quality copper products (particularly from Asia), a decrease of 20% in 2022 and another 10% in 2023 in the company's international sales and generally decreasing demand for its target products, along with increased electricity costs.
During meetings with local staff and union representatives, the company's management reportedly presented this deteriorating business performance and macroeconomic market environment. In a meeting in July 2023, management informed staff and union representatives of its decision to not renew fixed-term employment contracts (CDD).
Following an "in-depth review" of its business performance in the third quarter of 2023 and "persistent" negative trends, Circuit Foil Luxembourg's management has deemed a social plan affecting around 30 mostly administrative and technical staff necessary to safeguard its overall competitiveness "in an increasingly challenging international environment". As such, management decided to start the consultation process with the staff delegation.
The company assured that its management remained "committed to continuing the dialogue with staff and union representatives in a mutually respectful manner".
