Vestel to lay off 2,000 employees

Zorlu Holding CEO Ömer Yüngül stated regarding the layoff of 2,000 employees at Vestel, "It is true that 2,000 people will be laid off, but it is entirely for efficiency... The layoff of 2,000 people at Vestel will not negatively affect production capacity; on the contrary, it will increase."

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Vestel, which operates under the Zorlu Holding umbrella, is preparing to lay off 2,000 people.

According to a report by Bloomberg, Zorlu Holding has a debt of 4.9 billion dollars. The company is preparing for asset sales and layoffs.

According to sources speaking to Bloomberg, Vestel Elektronik, a subsidiary of Zorlu Holding and one of Europe's leading home appliance manufacturers, plans to lay off 2,000 employees, which accounts for approximately 10 percent of its total workforce.

According to data compiled by Bloomberg, Vestel's shares have lost more than 40 percent of their value this year, and the value of its dollar-denominated bonds maturing in 2029 is trading below 80 cents.

'FOR EFFICIENCY'!

Zorlu Holding CEO Ömer Yüngül told Bloomberg HT that they made the decision "for efficiency."

Yüngül stated, "It is true that 2,000 people will be laid off, but it is entirely for efficiency... The layoff of 2,000 people at Vestel will not negatively affect production capacity; on the contrary, it will increase. We see a debt-to-EBITDA ratio of three as sustainable."

Yüngül said, "We are a group with strong exports; we will be better with efficiencies. Our goal is to be more effective in markets outside of Europe, especially in the US market."

Yüngül also stated that they are shifting their resources and investments to the US, adding, "We will receive good news in September."

News Source: 12punto