Layoffs begin at CATL's battery plant in Debrecen

According to multiple independent sources cited by Telex,

CATL's battery plant in Debrecen has carried out extensive layoffs over the past week.

The redundancies initially affected employees on probation period, before extending to permanent staff members who had been with the company for six months to a year.

The layoffs have impacted various areas of the company, including office workers, skilled laborers, maintenance staff, quality controllers, and process engineers. Some sources indicate that employees who were receiving training in China were also recalled to terminate their employment.

Management has not provided clear explanations for the dismissals to those affected. The decision was made at the Chinese headquarters, with employees only being told that

Chinese specialists are needed in the current market environment.

Sources suggest between 50 and 100 people have been affected by the layoffs, though the final number could be higher as the process is still ongoing.

The move is particularly surprising as CATL was actively recruiting until a few weeks ago, offering exceptionally high salaries in the Debrecen region. The decision reportedly caught the company's Hungarian leadership off guard, including some of the local Chinese management. Some sources indicate that Chinese employees who opposed the layoffs were also dismissed.

CATL appears to have abandoned its earlier plan to fill middle management and skilled worker positions with Hungarian employees. This may be due to the Chinese leadership's dissatisfaction with recruitment pace, lack of specialists, and high turnover rates. The situation is further complicated by public resistance to battery manufacturing and previous negative experiences, which have made the company less attractive to potential employees.

The layoffs may also be connected to CATL's suspension of preparations for its second plant unit. While the company denied this in a statement, they only acknowledged 'reviewing the technology and schedule of the second cell factory,' without denying the halt in preparatory work.

CATL announced in 2022 that it would build a battery plant in Debrecen with an investment of approximately HUF 3 trillion, for which the Hungarian government promised significant support. The buildings for the first phase are already standing, with trial production planned for autumn and mass production for winter.

 Cover photo (for illustration purposes only): Portfolio