The management board of PKP CARGO has announced plans to implement group layoffs affecting up to 30% of its workforce, a move involving up to 4,142 employees across various professional groups. This decision, made on July 3, 2024, will initiate consultations with trade union organizations at the company's plants and headquarters.
The layoffs are scheduled to be completed by September 30, 2024. Employees affected by these dismissals will receive severance payments based on their length of employment.
PKP CARGO's current situation has been attributed to poor management over recent years, resulting in significant financial difficulties. The company's market share in terms of transport work and freight mass has declined sharply, dropping from nearly 60% in 2013 to under 30% in early 2024. The political decision in 2022 to prioritize coal transport further exacerbated the company's financial woes, leading to the abandonment of other contracts and subsequent negative impacts on its financial health.
In a related effort to stabilize the company, PKP CARGO has initiated sanation proceedings—a form of restructuring aimed at avoiding bankruptcy and restoring financial liquidity. On June 27, 2024, the company submitted an application to the District Court for the Capital City of Warsaw to commence these proceedings. If approved, an administrator will be appointed to oversee the company's management, with the goal of achieving the best possible outcomes for creditors, employees, and shareholders.
The restructuring process aims to retain as many jobs as possible while restoring the company's competitiveness. The management board has been engaged in discussions with other railway companies to facilitate the transfer of some employees, resulting in 1,000 employees being absorbed by PKP Intercity REMTRAK, PKP Intercity, and POLREGIO.
Additionally, PKP CARGO SA is relocating its headquarters in Katowice to optimize real estate costs. Employees will be reassigned to other company locations, including the Southern Plant in Katowice and the Silesian Plant in Tarnowskie Góry, with some transitioning to remote work.
The management board underscores that the restructuring and relocation efforts are crucial steps towards stabilizing the company's operations and ensuring its long-term viability in the market.
