The employees will know by the end of August about their tenure and the severance package they can expect. Their source also indicated that the company is handling the situation properly but production will be moved to Mexico.

The source reached out to the company and IBM did not deny the information. In their written response, they stated: “We will be closing the manufacturing facility in Vác, but some of the employees will be redirected to other IBM units and will work remotely”.

They also said: “Employees will receive a severance package in accordance with industry standards and legal requirements, as agreed upon in discussions with the relevant works council/union. We do not disclose the specifics of the proposed severance package”.

Based on data from the domestic Opten company information system, in 2022, IBM DSS achieved a turnover of 12.2 billion forints with a pre-tax profit of 606 million forints and a workforce of 448. In the previous two years, the company reported turnovers well above 30 billion forints and profits in the billions.

According to another source: “In September 2021, IBM split globally and also in Hungary. The Vác factory and part of the Budapest activities remained part of the so-called big IBM, but the traditional operational business was separated into Kyndryl Hungary (with locations in Székesfehérvár and Budapest), which also contributed to the decrease in company revenue”.

Original source: Telex.hu

Words by Peterjon Cresswell for Xpatloop.com
Peterjon has been researching the byways of Budapest for 30 years, extending his expertise across Europe to produce guidebooks for Time Out and his own website liberoguide.com