Ferrari to reduce factory production and shed jobs

The downturn is caused by a reduction in orders, notably from Ferrari's partner make Maserati, who receive their engines from the Maranello-based firm. Maserati ordered 4500 engines from Ferrari in 2009, a 50% reduction from the 9000 that it ordered in 2008.

Ferrari's workers staged a four-hour walkout in protest at the decision after Ferrari revealed plans to eliminate 120 office positions and 150 factory jobs in exchange for the last payment of a 2009 bonus which was due this past April. Ferrari currently has 3000 employees on its payroll.

"Ferrari has proposed to pay the bonuses if we accept the job cuts," Giordano Fiorani, a union official representing workers said. "We are ready to discuss layoffs and reorganization, as there is a real cut in production, but we don't understand their rigidity."

Ferrari spokesperson Stefano Lai confirmed that plans were afoot to lower the headcount but did not mention any figures. Lai said that Ferrari will maintain production figures at 6000 cars this year and that some jobs would be outsourced and some employees would be offered early retirement. Ferrari sold 6294 cars in 2009, but its first quarter profit for 2010 slid by 28% to US$49.5 million