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Two companies report layoffs

Two mid-size manufacturing companies in east Slovakia recently reported that they will lay off significant numbers of their employees as a result of decreased business. The telecommunications equipment producer Tesla Stropkov, located in northeastern Slovakia, said it would have to lay off some 400 people out of its total workforce of 1,470 if it does not sign new contracts or does not find new production programs by the end of this year, the company's management announced. A second company, SEZ Krompachy, an electrical manufacturing plant, said it plans to lay off 220 people as a result of poor performance and weak demand. The layoffs will reduce the company's workforce to 640. Before 1989, the firm employed 2,600 people. While the management blamed performance, labor unions blamed weak management for the company's skid. According to the unionists, management maintained their traditional assortment of products, and delayed planned investments.

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