Osram announced in its latest press release that the company will shift production of its cinema lamp to Berlin and close the production site in Eichstätt, a Bavarian town in Germany.

Osram said the decision is made in response to structural changes in the cinema industry and additional economic challenges being faced as a result of the coronavirus. The market for cinema lamps is impacted by the pandemic as people are not able to go to cinemas, leading to shrinking demands and production decline.

German media Die Welt reported that the measure was criticized by IG Metall, the largest union in German formed by metalworkers, indicating that shutting down the site in Eichstätt violates the agreement of Osram from Novermber 2019 that included location and job security. Despite that Osram will offer all employees at the Eichstätt a job in Berlin, the two cities is 500 kilometers way from each other.

Osram plans to start the move from Eichstätt to in October 2020.