While economists are saying the worst of the global recession is over, it seems that it's only catching up with Ferrari as the Italian carmaker is looking to lay off some of employees and temporarily shut down the operations of one of its engine plants.
Ferrari is reportedly planning to terminate 120 office personnel and 150 factory workers, or nine percent of its 3,000-strong workforce, and putting on idle one of its factories in Maranello, Italy because of fewer orders from its sister brand, Maserati, a luxury carmaker which uses Ferrari-made engines, Bloomberg reported.
Maserati's orders for Ferrari-made engines have been declining in the past two years with just 4,500 powerplants made last year, half of the nearly 9,000 produced in 2008.
Ferrari is reportedly seeking to focus its resources on activities like product development and technological innovation while reaching out to new customers, while its non-core operations will be outsourced to local companies. This move will allow Ferrari to retain around 100 of its contract workers.
"Ferrari has to respond to market demands that rise and fall in an ever less-predictable fashion," the company said in a statement.