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Black days for European companies

02/11/2011

The financial problems faced by the European governments force the large companies to restructure their operations and dismiss thousands of employees. The local and foreign companies are forced to rethink their business strategy due to the decrease of sales and to the economic projections for 2012.

The most affected were by far the largest banking groups. They have lately announced the dismissal of thousands of employees.

The British Group, HSBC will dismiss 30.000 employees in the next two years and Barclays will cut off 3000 jobs. Credit Suisse also announced that it will renounce at 3500 jobs. The problems started to appear in the industrial production too. The services sector and the industrial production in the euro area, recorded in October the fastest rate of decline in more than two years, announcing the reentering of Europe in recession.

Problems also for the Americans in Europe

General Motors sold 6.3% fewer cars in Europe than the same period last year. General Electric announced that profits had suffered because of the situation in Europe and of the earthquake in Japan.

The Greeks and the Romanians are moving in Bulgaria

The problems faced by Greece led companies with turnover of 3 billion euro to move to Bulgaria. They created about 100.000 jobs in the neighbor state. According to recent estimates by the end of this year, another 800 companies with Greek capital will move to Bulgaria.

Source: Adevarul

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