2,400 Jobs Lost: PKP Cargo Layoffs Turn Into Poland’s Latest Political Battle

Poland’s national rail freight giant is cutting deep. PKP Cargo confirmed thousands of layoffs as part of a sweeping court-supervised restructuring plan, sending shockwaves through the political scene and fuelling sharp debates over the government's role in the company’s decline.

PKP Cargo has confirmed plans to cut more than 2,400 jobs over the next two years as part of a major restructuring process conducted under court supervision. According to company management, the mass layoffs are an unavoidable step in stabilising the operator’s operations. The first wave of dismissals is set to conclude by July 2025, while political opposition blames the government, triggering public outrage.

Job Cuts in Two Phases Through 2026

The dismissals will proceed in stages. By September 2026, PKP Cargo plans to lay off more than 2,400 employees across various job categories throughout the company. The board of PKP Cargo sees no alternative to the mass redundancies. Last week, the company’s management formally requested authorisation from its court-appointed restructuring supervisor to launch consultations with trade unions regarding the planned layoffs, which extend beyond routine management decisions. The court has already granted its approval.

As with previous rounds, the job cuts will remain subject to court oversight as part of the ongoing restructuring process. The layoffs will take place in two phases: 1,041 employees will be dismissed by the end of July 2025, followed by up to 1,388 more by the end of September 2026.

Severance Packages Based on Length of Employment

Employees affected by the layoffs will be entitled to severance payments based on their length of service. The PKP Cargo management board stated that "despite previous corrective and restructuring measures in employment, the company’s situation demands further steps. The initiated process constitutes a significant part of the restructuring plan, full details of which will be presented by the end of June 2025." Consultations with trade unions began on 6 June 2025 and are scheduled to continue for 20 days.

Upon conclusion of these consultations, agreements with unions or formal regulations governing the mass layoffs will be finalised, provided no objections are raised by the court overseeing the restructuring.

Exemptions for Parents and Medically Vulnerable Employees

PKP Cargo also announced that certain groups will be excluded from the layoffs, including single parents raising underage children, caregivers of children with disabilities, and employees requiring intensive medical treatment. In households where multiple employees meet redundancy criteria, only one person will be affected to avoid dual hardship.

Layoffs Fuel Political Dispute: Tusk’s Government Under Fire

The scale of PKP Cargo’s layoffs has sparked intense political debate. Opposition lawmaker Marek Grobarczyk, former State Secretary at the Ministry of Transport, stated on platform X that the "drama of thousands of dismissed PKP Cargo workers reflects the policies of Prime Minister Donald Tusk." He further pointed out that while the cuts are underway, a German logistics company is purchasing a rail freight terminal in Ukraine, just across the Polish border.

Dramat tysięcy zwalnianych pracowników PKP Cargo ma twarz Tuska. Niemiecka firma logistyczna kupuje na Ukrainie, przy granicy z Polską, kolejowy terminal masowy. Wygląda na to, że rząd Tuska, likwidując PKP Cargo, robi miejsce na rynku dla zagranicznej konkurencji przewozów… pic.twitter.com/yt1UqWXq2c

— Marek Gróbarczyk (@marekgrobarczyk) June 8, 2025

"It appears that Tusk’s government is clearing the way for foreign competitors by dismantling PKP Cargo. This German plan to turn our country into a German rail siding must trigger justified outrage among Poles," Grobarczyk said. However, Polish users on X remain divided along political lines. Supporters of the government argue that eight years of conservative rule have also significantly weakened PKP Cargo prior to the current administration.

Source: RAILTARGET