The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacturing Of Furniture And Other Manufacturing Other Manufacturing 32.40 - Manufacture of games and toys
New offshoring locations
Hungary, Czechia, Mexico
380 jobs Number of planned job losses
Announcement Date
5 February 2013
Employment effect (start)
1 March 2013
Foreseen end date
31 July 2015
Description
Danish multinational manufacturer of toys, LEGO, announced that 380 jobs will be shed at the factory in Billund.
This is part of a larger plan in which LEGO will close part of its production in Denmark and offshore it to facilities in Hungary, the Czech Republic and Mexico. The plastic foundry however will stay at Billund.
It is not yet known how many jobs will be reduced by natural attrition and how many by direct dismissals. Redundancies are to be implemented until mid-2015.
The employees' representatives and the management will now start discussions about how to find a socially agreeable solution that will result in as few dismissals as possible. At the end of 2012 LEGO had 12,264 employees globally and 3,872 in Billund.
Updated, 18-11-2013:
The first round of redundancies was announced. Whereas the company had first announced 75 direct job cuts, this was reduced to 25 direct cuts and 50 cuts via natural attrition after talks with labour unions. According to the managment of LEGO, the plan is to cut further 200 jobs during 2014. Redundancies are still to be implemented until mid-2015 and total number of dismissals remains unchanged.
Sources
18 November 2013: Jyske Vestkysten
5 February 2013: Fagbladet3f.dk
Citation
Eurofound (2013), LEGO, Offshoring/Delocalisation in Denmark, factsheet number 75006, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/75006.
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