The Novo mesto-based car maker last year completed a new assembly line for the production of the new Twingo and the Smart, the latter in cooperation with Daimler.

When production kicked off in autumn it introduced the night shift and hired 1,000 temporary workers in addition to its 2,000 regular staff.

The company now plans to reduce production and will let go of 450 temporary workers in early March.

"We have to ensure competitiveness. And to be competitive you have to be very adaptable," Haettel said.