Südösterreich; Kärnten; Oberkärnten
Location of affected unit(s)
Manufacture Of Material For Textiles, Apparel, Leather And Related Products
Manufacture Of Leather And Related Products
15 - Manufacture of leather and related products
New offshoring locations
Romania, Indonesia

170 jobs
Number of planned job losses
Job loss
Announcement Date
16 August 2006
Employment effect (start)
16 August 2006
Foreseen end date
30 September 2006


Due to competitive pressure, the Austrian subsidiary of the German shoe manufacturer ARA has been undergoing substantial restructuring since 2004. This means that production capacities have been relocated from the site in Feldkirchen (Carinthia) to low-wage countries, such as Romania and Indonesia, where production facilities have already been set up. After major restructuring in 2004 and 2005, when 70 and 32 workers, respectively, were laid off, some additional 170 employees are going to lose their job by the end of September 2006. This information was released by Herbert Linninger, the company's CEO, on 16 August 2006. The site in Feldkirchen will then run only a sales department and a logistic centre, both then employing not more than a total of 60 employees. The management is currently negotiating with the unions about a social plan in order to mitigate the disadvantages for the workforce concerned.


  • 16 August 2006: Wirtschaftsblatt
  • 16 August 2006: Der Standard


Eurofound (2006), ARA Österreich, Offshoring/Delocalisation in Austria, factsheet number 60513, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/60513.