Akrom Akal lays off half of personnel

Akrom Akal Textile Romania (Akrom Akal Textiles Romania), one of the top three players on the local textile market, has reduced its production portfolio and has laid off almost half its employees in order to cut costs and derive a profit, Erkan Altay, the company’s general manager, told ZF. The company aims to reach the breakeven point this year, after it had closed 2005 with losses. The last year when the company made a profit was 2004. “We had to reduce our activity in order to become profitable in the new market context, so that we stopped making certain types of products. The company’s purpose as of the second half of 2005 through 2006 has been to make a profit and to achieve the operating income we have budgeted,” explains Altay. Akrom Akal ended last year with 490 employees, a 47% drop against the 2004 figure. The move is contrary to the general trend of the market, as most players in the field are hit by a severe lack of qualified workers. The company currently has 480 employees and will settle at around 600 people by the end of the year.