Another 125 employees of Hadeland Products (Hapro) in Jaren, one of Europe’s leading electronic manufacturing service companies, are losing their jobs after Hapro lost its biggest customer, Cisco. The loss of the Cisco contract is forcing the staff to be cut in half.
Local newspaper Hadeland reports that the jobs losses were not unexpected, but it wasn’t until last week that specific numbers emerged. Hapro had warned of job cuts totaling 240 last year, but the staff reductions came slower than expected because Cisco needed Hapro longer than first thought. Now Cisco is moving is production to lower cost countries and a major chunk of Hapro’s revenues will disappear.
Hapro reported revenues of just over a billion kroner in 2011, with Cisco alone accounting for NOK 670 million of that. “When that disappears, there are consequences,” chief executive Erik Lundbekk told Hadeland. He expects a total of 340 jobs to disappear over the next year.