Yura Shinwon is ending production of wiring harnesses at its Nis factory in Serbia due to a large loss of business, serbianmonitor.com reported, citing the Beta news agency.

The announcement, said to have been pinned on the factory’s noticeboard, did not indicate the number of workers who will lose their jobs.

Employees told the news agency 264 full-time employees will have the opportunity to continue working, while almost 400 workers with fixed-term contracts will lose their jobs.

“Workers with fixed-terms job contracts have until 11 September to declare whether they want to move to work in the second Yura plant. Those who accept will sign an annex to the contract and continue working for a fixed period of six months, while those who refuse will lose their jobs,” a worker who wished to remain anonymous was quoted as saying.

Workers who refused to change plants were told they would be left without redundancy compensation as the employer had the right to do so under current labour law.

“The notice said the plant would close on 30 September and this took us all by surprise. The workers who have a fixed-term job contract are really worried; they wonder if they will be able to find another job quickly because they have families to feed and many have bank loans to pay,” said the same worker.

The management of the South Korean company did not want to comment further about the factory’s destiny and the dismissal of the workers, serbianmonitor.com said.