Last weeks news that the firm ST microelectronics intends to scale down operations and lay off 60% of its workforce in the coming months. This is not something which has developed recently. For the last years, the firm has been intending to reduce its presence in Malta, but it seems that now, the financial crisis is pushing it to make decisions which will see a downsizing of operations on the island.
Does this piece of news trigger the start of the recession in Malta ? Many economists have said that Malta will start feeling the effects of the crisis ,but I didn't know that they would be so specific. ST Microelectronics employes around 2000 employees and it accounts for over 50% of Malta's manufacturing industry's exports. These measures will have a bad effect on Malta's economy.
Let us hope that this news is only 'a bad apple in a frutiful basket' and that it is not the start of more bad economic news on Malta's part.
Thanks for reading
Luke
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