Crisis impacts companies, jobs market

Monday 27 October 2008

The impact of the financial crisis is being felt more strongly in the Netherlands with several internationally-orientated firms lowering earnings forecasts or cutting contract jobs.

Insurance group Aegon confirmed on Monday that it will decide in the next few days whether to ask for financial help from the government’s €20bn fund set up earlier this month to assist companies hit by the credit crisis.

‘We want to prevent speculation and let the market know as quickly as possible if we want to use the fund and if so, under what conditions,’ an Aegon spokesman told the Financieele Dagblad on Monday.

Chemicals company DSM lowered its full-year forecast for operating profit to ‘around €1bn’ on Monday. The company will also close several factories on a temporary basis and take other action to cut costs as demand slows for some of its products, the Financieele Dagblad said.

And postal company TNT said it is considering a €75m injection to shore up its corporate pension fund. Last week a number of sector-wide pension funds, including the giant ABP, reported falling assets because of turmoil on the financial markets.

Jobs are also coming under increasing pressure. The Volkskrant reports that companies such as brewer Heineken, truck maker Scania and chip companies NXP and ASML are getting rid of temporary and agency staff.

The FNV union said 360 jobs are at stake at Scania. Last week, sector peer DAF said it would lay off its temporary workers.

© DutchNews.nl

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