Denso is to lay off 800 workers at its Hungarian plant in Szekesfehervar from 1 October, the company announced on Friday.

Denso Manufacturing Hungary cited the difficult business environment following the global economic downturn as the reason for the layoffs.

“The crisis that has hit the car manufacturing sector has its adverse effect on us, and we do not expect the situation to improve significantly in the upcoming one-two years,” the plant’s human resources director Istvan Latos told AFP.

The plant, opened in 1997, produces common rail systems for diesel engines and currently employs 4,100 workers, Latos said.

The company reduced the number of shifts in December and introduced a four-day work week in January in an attempt to avoid downsizing.

However, the plunge in the automobile sector “made redundancies unavoidable … for the sake of long-term operation and competitiveness,” the head of the unit, Yukimasha Ohoka, said in a statement.

The company plans to return to a five-day work week in October, AFP said.