Major Layoffs Announced at PKP CARGO: Up to 30% Workforce Affected

The management of PKP CARGO S.A. has announced its decision to initiate group layoffs across its facilities and headquarters following the Act of March 13, 2003, on special rules for terminating employment relationships for reasons not related to employees.

As a result of this resolution, consultations on the intention to conduct group layoffs will begin with the trade unions operating within the company's facilities and headquarters. The group layoffs could affect up to 30% of the company’s workforce (up to 4,142 employees) across various professional groups, with the layoffs expected to be completed by September 30, 2024. Employees affected by the group layoffs will be entitled to severance pay, which will depend on their length of service.

The primary reason for PKP CARGO S.A.'s dire condition is poor management in recent years. Despite losing market share and contracts, and declining real revenues, costs and salaries have increased, and investments and expenditures were made with money the company did not have.

The market share, measured by transport work (number of kilometers traveled), has significantly decreased from nearly 60% in 2013 to less than 30% in the first quarter of 2024. The market share measured by freight volume dropped from 49% in 2013 to 30% in the first quarter of 2024.

The situation at PKP CARGO S.A. was further exacerbated by a political decision in 2022 to fulfill a government order for coal transport. The associated abandonment of other contracts negatively impacted the company's condition and financial situation in subsequent years.

 

Source: PKP CARGO Press Releases