Subject:
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Lay-offs delayed at Lego Billund after outsourcing trouble
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Newsgroups:
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lugnet.mediawatch
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Date:
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Wed, 6 Jun 2007 01:49:51 GMT
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Viewed:
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4197 times
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http://www.evertiq.com/newsx/read_news.aspx?newsid=7696&cat=1
Lay-offs delayed at Lego Billund after outsourcing trouble
The workforce at Lego Billund, Denmark was supposed to be reduced from 1200
employees to only 300 employees since the company had decided to outsource major
parts of its manufacturing to Flextronics but as the outsourcing has been
followed by problems the lay-offs have now been postponed on an uncertain time
range.
May 30 2007, 3:22 PM (evertiq)
by: Jesper Olsson
Lego's outsourcing has from the very beginning been connected with major
troubles. Even from the start there were a number of opponents to the
outsourcing of manufacturing of one of Denmarks prides, the Lego products. On
many internet sites there have been discussions about troubles that have come up
along the process.
Flextronics were contracted to take over major parts of Lego's manufacturing.
Flextronics took over Lego's plant in Czech Republic and Flextronics would also
manufacture Lego's products at its sites in Mexico. Major problems in the
manufacturing have now resulted in a decision from Lego to keep its workforce in
Billund to start up manufacturing there again. The company yet don't know for
how long this will last or when the plants in Czech Republic and Mexico will be
up and running properly.
"That's right. A key employee quit his job in Czech Republic and we didn't get
the needed staff in the start up phase. The last thing was quite unexpected. We
thought that our manufacturing partner had everything under control. In Mexico
the material started to come in before the equipment and the personell were
ready and that caused us huge problems", Lego's CEO Pali Padda told the Danish
stock market magazine "Börsen".
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