Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Iskratel is a telecommunication equipment company producing switching systems for telephone networks. The company is 52% owned by a Slovenian holding and 48% by Siemens. In 2005, Iskratel's financial performance deteriorated due to problems on the Russian market, a key market for the company. Even though the company introduced a new generation of switching systems, it is not a market leader and the improvement of cost efficiency is of crucial importance. This is to be achieved through reduction of employment. The company aims to avoid forced redundancies. Those threatened by job loss are people with secondary education but also the engineers, whose knowledge, according to the company »is good but not top level«. Siemens is interested in acquiring the majority of shares but domestic owners have not yet responded. Unofficial sources say that ending the business co-operation with Siemens would endanger another 300 to 400 jobs in Iskratel.
Eurofound (2006), Iskratel, Internal restructuring in Slovenia, factsheet number 63182, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/63182.