Layoffs be a means of surviving for factories in the LED industry

<< Go Back Posted By:admin on Jan 06,2015in Industry News


According to an interview, the LED industry’s employee demands have shot up. 47.62% manufacturers had increased hires this year, while 28.57% workers reported a smaller work force. Some major lighting manufacturers have all shifted their businesses priorities, and are focusing on LED technology, and are in the process of simplifying businesses services, and lowering employee costs. Layoffs have become a necessary measure for manufacturers to survive in the competitive industry.

Manufacturers that expanded their work force were mainly trying to meet hikes in future production capacity demands. Some are well known large manufactures, while a small portion are SMEs involved in LED processing to meet growing orders. Manufacturers growing work force are often closely related to the company’s size, and competitiveness. Lighting manufacturers orders tend to change each quarter, sometimes companies need more staff because of increased orders, and fewer workers when orders drop. Usually the work force fluctuation is not huge in a year.

Aside from some SMEs forced to slash jobs to reduce costs due to sudden accidents, some manufacturers’ layoffs were caused by the introduction of automated equipment to replace manually operated equipment. Manufacturers replacing manpower with machines haves removed need for hiring new staff. Still, most processing manufacturers are speculating whether to make the transition, due to machines high costs and maintenance.