Severovychod; Pardubicky;
Location of affected unit(s)
Manufacture Of Computer, Electrical Electronic And Optical Products
Manufacture Of Electrical Equipment
27.1 - Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus

209 - 369 jobs
Number of planned job losses
Job loss
Announcement Date
2 December 2019
Employment effect (start)
Foreseen end date
31 December 2020


Siemens announced that it will gradually close the production of low voltage circuit breakers and switchgear at its OEZ plant in the city of Králíky by the end of 2020, which will affect 369 workers. The company plans to relocate a part of the production to another factory in Letohrad, which is approximately 30 kilometres away from Králíky. About 160 employees out of the 369 staff will get an offer to work in the Letohrad plant. To those who do not receive an employment offer or do not want to profit from it, Siemens promises higher severance pay than stipulated in the labour code or collective agreement. The main reason for restructuring is efficiency increase. The company also plans to negotiate the strengthening of transport services between the two cities with the regional authority. 

The Králíky plant, whose production will be phased out by December 2020, has been part of the Siemens Group since 2007.Overall, Siemens currently employs in the Czech Republic 8,462 people, 950 more than in 2018. Siemens net profit decreased by about 6 per cent to CZK 871.4 million (€34 million as at 13 December 2019) in the last financial year.



Eurofound (2019), OEZ Králíky, Closure in Czechia, factsheet number 99294, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/99294.