A Crisis Pushes Companies in Egypt to Lay Off Thousands of Workers… What Is the Reason?

Al-Taj News – Egypt’s electrical appliance industry is facing mounting pressure amid declining sales and rising production costs, while estimates by industry officials indicate that more than 20,000 workers have been laid off.

The Egyptian newspaper Al-Shorouk revealed in a report it published that companies operating in the electrical and household appliances market had laid off thousands of workers amid contracting demand and declining production, according to industry sources who spoke to the newspaper. Officials attributed these developments to the severe stagnation, rising prices of goods, and manufacturing costs.

Hassan Mabrouk, head of the Electrical Appliances Division at the Federation of Egyptian Industries, said that sector sales had declined by more than 50% compared with levels under normal conditions, explaining that this drop had prompted companies to reduce production and lay off part of their workforce to cut expenses.