Poland Faces Economic Downturn and Mass Layoffs in 2024

Poland faces mass layoffs in 2024 due to economic downturn, with over 8,000 jobs lost in Q1. Companies cite rising costs and declining orders, impacting industries like manufacturing and tech. Government and stakeholders must work to mitigate the impact on workers.

Wojciech Zylm
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Poland Faces Economic Downturn and Mass Layoffs in 2024

Poland Faces Economic Downturn and Mass Layoffs in 2024

Poland is grappling with a significant economic downturn in 2024, leading to mass layoffs across various industries. According to data gathered from 12 regional labor offices, nearly 8,000 employees are set to lose their jobs in the first quarter of the year alone. This marks a sharp increase compared to the previous year, signaling a troubling trend for the Polish economy.

The primary reasons cited by companies for the layoffs are rising costs and declining orders. Over 90 companies across 12 voivodeships have expressed their intentions to terminate employment contracts, with the industrial processing and IT sectors being particularly hard-hit. The economic slowdown in the eurozone has contributed to a decrease in orders for Polish businesses, exacerbating their financial difficulties.

One notable example is Levi Strauss & Co., which plans to cease production at its Płock facility by June, resulting in the loss of approximately 650 jobs. The company attributes this decision to the high labor and energy costs in Poland and Europe compared to Asian countries. Employees at the Płock factory are dissatisfied with the severance packages offered, which they consider to be "humiliatingly low." In response, the Solidarity trade union organized a protest outside the factory on Thursday to advocate for the rights of the affected workers.

Why this matters: The mass layoffs in Poland reflect the broader challenges faced by the country's economy in 2024. The repercussions of these job losses are felt across various regions and industries, impacting thousands of workers and their families. The government and stakeholders must work together to mitigate the impact of the economic downturn and support affected employees.

The economic downturn has not spared the tech industry, with Poland's largest video game developer, CD Projekt, announcing plans to lay off around 100 employees, or 9% of its workforce, at its CD Projekt RED studio. The company cites being overstaffed based on current and expected project needs as the reason for the layoffs.

As Poland navigates this challenging economic landscape, it is crucial for the government and businesses to collaborate in finding solutions to support affected workers and industries. The rising costs and declining orders faced by companies highlight the need for measures to boost competitiveness and stimulate economic growth. The protests organized by trade unions serve as a reminder of the human impact of these layoffs and the importance of ensuring fair treatment for employees during this difficult time.

Key Takeaways

  • Poland faces an economic downturn in 2024, leading to 8,000 layoffs in Q1.
  • Rising costs, declining orders, and eurozone slowdown drive layoffs across industries.
  • Levi Strauss to close Płock facility, resulting in 650 job losses.
  • CD Projekt to lay off 100 employees, or 9% of its workforce.
  • Stakeholders must collaborate to mitigate impact and support affected workers.