The drop in demand for manufactured products and the need to cut costs led several companies listed on the Bucharest Stock Exchange (BVB) to forego over 5,000 employees this year, according to an analysis made by Business Standard, based on data reported by 16 companies.

A further 2,350 people are to be temporarily laid off and most of them will return to their jobs when demand rebounds in their field of activity, according to the management of these enterprises.

Some companies, such as car parts producer Compa Sibiu, industry supplier Altur Slatina, oil, gas, and construction company Dafora Mediaş, and aluminum smelter Alro Slatina reported staff reductions as early as the first three months of this year, according to their quarterly data.

Most companies registered in the first quarter a decline in the number of employees of up to 40 percent compared to the average 2008 level. However, most restructuring programs applied by the companies' management are to take place this summer and some of them will extend to 2010.

Analysts on the Stock Exchange say that when companies are laying off over 50 percent of their staff, investors should be very careful.

Source: Business Standard