All 1,900 Leoni workers in Malosiste village left jobless: Production officially halts

At the very time a state and city delegation led by Serbian President Aleksandar Vucic was opening the Ariston factory and touring several plants in the city of Nis and the surrounding area, the Leoni facility, which Vucic himself opened as prime minister in 2015, shut its doors.

The first 400 workers were laid off and received severance pay back in September, with further dismissals continuing in stages since then, Juzne Vesti said.

“Due to the closure of the factory in Malosiste, employment contracts with 1,900 employees were terminated in stages, according to the announced schedule,” said Leoni, noting that everyone has been paid severance and that the process was conducted in accordance with the law.

The company explained that production at the facility near Doljevac was no longer sustainable as it was generating significant losses.

They noted that the crisis in the European automotive industry, combined with rising operating costs in Serbia, led to the closure of one of their four branches.

They further explained that while the company is also facing rising costs at its other locations in Serbia - Prokuplje, Nis, and Kraljevo - operations at those sites will continue.