Production at Leoni in Malosiste officially suspended: 1,900 workers laid off, tender announced for dismantling and packaging of factory equipment

The Leoni company confirmed that the employment contract with all workers has been terminated and that production at the Malosiste plant was officially suspended in mid-December, after it was announced in July that the Leoni company was closing its plant in this town near Doljevac and that around 1,900 employees would be unemployed by the end of the year, Juzne vesti reported.

The first 400 workers were dismissed and paid severance pay in September, and since then the layoffs have continued in stages.

Due to the closing of the factory in Malosiste, the employment contract with 1,900 employees has been terminated, in stages according to the announced schedule. According to Juzne vesti, they were paid severance pay in the amount of 50% of the average monthly “gross 1” salary earned in the last three months for each full year of service in the company. This is 50% more than the minimum severance payment prescribed by law - Leoni stated.

They note that everything was done according to the law and that each employee was regularly paid their personal income and paid taxes and contributions from the beginning of 2025 until the last working day, Juzne vesti reported.

As Leoni previously stated, production at the factory near Doljevac is not sustainable because it is making a significant loss, which is why they decided to first reduce and completely suspend production at that facility by the end of 2025. They also noted that the crisis in the European automotive industry and increased business costs in Serbia led to the closing of one of the four branches.

– This is a very heavy blow for those who lost their jobs, for the company itself, as well as for the local community, but it was inevitable in the given circumstances – Leoni emphasized.

They pointed out that at other locations in Serbia - in Prokuplje, Niš and Kraljevo, the company was also facing increased costs, but that they were still continuing their business.

Tender for dismantling factory equipment announced

The company Leoni Wiring Systems Southeast d.o.o. Prokuplje has issued a call for participation in a tender for the provision of services for the uninstallation, packaging and loading of automatic wire cutting machines, automatic and semi-automatic wire preparation machines, terminal crimping presses, uninstallation of assembly line structures, rails and electrical cabinet lines, as well as the uninstallation of automatic rubberizing machines and accompanying molds.

As specified, the engagement period is from January 8 to February 28, 2026, and this is at the Malosiste facility.

Closed informative offers can be sent until December 23.

More details (in Serbian) can be found HERE.

Leoni Wiring System Southeast d.o.o. Prokuplje

Leoni Wiring Systems Southeast doo Prokuplje

Leoni Malošište

closing of Leoni facility in Malošište