Zorlu Holding, one of Türkiye's largest conglomerates, plans to cut some 2,000 positions at its Vestel Elektronik unit as part of an "efficiency" push, according to the company's CEO, Ömer Yüngül, on Tuesday, who confirmed earlier media reports.
Bloomberg reported that Zorlu Holding is preparing for asset sales and layoffs by carrying out one of the country’s largest corporate restructuring transactions to alleviate investors’ concerns about its $4.9 billion debt burden.
Zorlu Holding CEO Ömer Yüngül evaluated the debt restructuring news to Bloomberg HT.
“Laying off two thousand people is right, but it is entirely for efficiency ... Layoffs of 2,000 people at Vestel will not negatively affect production capacity, on the contrary, it will increase," finance-focused Bloomberg HT quoted Yüngül as saying.
"We see a threefold sustainability in the debt-to-EBITDA ratio," Yüngül said, adding that there is no problem with debt payment.
Vestel Elektronik is one of Europe's leading home appliances and electronics manufacturers. According to the Bloomberg report, the planned 2,000 job cuts account for 10% of its total workforce.
"We are a group with strong exports, and we will be better with efficiency. Our goal is to be more effective in markets outside Europe, especially in the U.S. market," he added.
Speaking of investments, Yüngül said, "There are very serious opportunities coming from the U.S. right now, and we are evaluating them. We have turned our resources and investments to the U.S., we will receive good news in September."
Zorlu's businesses range from companies in real estate to energy and manufacturing. The company earlier this year also underwent a leadership change as former chief executive Cem Köksal stepped down following an investigation into internal email correspondence, in which he warned workers against celebrating Islam's holy month of Ramadan.
