The Polish furniture industry has been hit with shocking news as Black Red White (BRW), a leading furniture manufacturer, has announced plans for large-scale layoffs. The decision was confirmed by the District Labour Office in Biłgoraj, Poland, where the company is headquartered. According to the office, BRW formally notified them of its intention to carry out collective redundancies beginning in early 2025.
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The layoffs are expected to take place between February and June 2025. The company's notification detailed the criteria for selecting employees for redundancy, although it did not disclose the total number of employees to be affected. The Labour Office has requested clarification regarding the scale of the layoffs, including the number of redundancies in Biłgoraj County and the timeline for issuing notices. No response has yet been received from BRW.
Last year, BRW faced significant challenges, including a downturn at its production plant in Andrychów. Paweł Sajdak, Managing Director of BRW Andrychów, acknowledged the difficulties, stating: 'We are analysing the market situation and will make a decision by the end of the year.' BRW's financial struggles have been evident. In the 2024 edition of the "Meblarski 1000" report, which ranks Poland's top 1,000 furniture manufacturers, BRW recorded a revenue decline of 13.72% year-on-year in 2023. Meanwhile, in the "Top 500" report of furniture and lighting retailers, the company saw an even steeper drop of 22.49%, though it managed to secure seventh place in the rankings.
Further details have emerged about production cutbacks. TVP3 Rzeszów recently reported that layoffs will significantly impact BRW's Przeworsk facility, where production of tables and chairs will cease by the end of March 2025. The closure will affect 220 employees, who will either be offered severance packages or given notice in line with employment law. BRW has pledged to provide support for affected workers, including help finding alternative employment both within the company and externally.
Source: www.biznes.meble.pl