Large American manufacturer leaves Hungary, laying off hundreds of employees

The American company decided to close its plant in Vác, a Hungarian town north of Budapest, and relocate its production to Mexico.

According to Telex, they even terminate the operation of their Hungarian subsidiary, IBM Data Storage Systems (DSS) Ltd. The company assured their workers will receive all information concerning the closure by end-August. Furthermore, the firm promised a fair lay-off procedure. Moreover, they added that some of their employees will continue to work from home. Others will do moved to other IBM units. However, fearing the fierce competition, they chose not to share the number of their plants and employees in Hungary.

The severance package will follow the relevant laws and industrial patterns. They added that they had talks with the workers’ union concerning the details. However, that information will not be made public. They confirmed that the Vác plant was to move to Guadalajara, Mexico.

According to Opten, IBM’s DSS in Hungary had a HUF 12.2 billion turnover and a HUF 606 million profit before tax. In 2022, they had 448 employees in Vác, who produced data storage servers.