A Polish furniture manufacturer is facing the possibility of laying off 50 employees due to ongoing financial challenges. This comes after the company had previously announced plans to reduce its workforce by 109 last year, which were eventually averted thanks to securing new orders.
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However, in December 2024, VMG Konstantynów reported the potential lay-offs to the local district labour office, citing financial difficulties worsened by rising production costs.
The company's troubles reflect broader struggles within the Polish furniture industry, which has been grappling with increased employment costs, high energy prices, inflation, and expensive raw materials, particularly wood. According to Łukasz Chłądzyński, deputy director of the Voivodeship Labour Office in Łódź, these employment reductions are not guaranteed, as fewer than 40% of the planned lay-offs for 2024 have been implemented so far.
VMG Konstantynów, known for producing pine chairs and tables, is one of many companies in the furniture sector that has struggled over the past two years. The ongoing challenges underscore the difficulties faced by Poland's manufacturing industries, with companies dealing with rising operational costs that are eroding profitability.
Despite these obstacles, there is still uncertainty surrounding the final number of job cuts, as the company hopes to mitigate the impact through continued efforts to secure new business.
Source: www.bankier.pl