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Ikea Layoffs: 17% of Goleniów Plant Staff Let Go Due to Decreased Orders

Ikea is parting with 130 employees, which is 17 percent of the plant’s staff production in Goleniów. The reason for the layoffs is a lower level of orders from a global furniture manufacturer – informs the portal gs24.pl.

Ikea is laying off its factory in Goleniów

This is definitely a crisis situation and it cannot be underestimated, but there is a lot of work in Goleniów and everyone will find something to suit their abilities – comments Robert Krupowicz, mayor of Goleniów for the portal.

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Dismissed employees will receive severance pay.

The head of one of the largest furniture factories in Poland, who does not want to give his name because he also supplies Ikea and other large furniture stores, claims that the entire industry is suffering due to the decline in sales to such an extent that even optimistic forecasts for the coming months and next year were abandoned – the weekly “Zeit” reported in mid-September.

Ikea “does not conclude long-term supply contracts with us, the manufacturers, for a period of two or three years,” says the furniture entrepreneur.

– And new conditions are negotiated for each order. It makes that it is particularly difficult for manufacturers to invest in machinery and production plants because uncertainty is huge – he adds. Traders have not only reduced the quantities ordered, but are also increasingly turning to producers outside Europe.

Problems in the industry

Problems can also be seen among our neighbors. The Maja plant in Wittichenau in north-eastern Saxony, which produced 25,000 finished furniture per dayalmost 6 million shelves and cabinets a year and are one of the world’s largest suppliers to Ikea, are to be closed after over 30 years.

Why now? With COVID-19 and the war in Ukraine high inflation has come, prices have increased so much that many customers are now saving on larger purchases, such as furniture. This leaves clear traces in the furniture industry and trade.

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2023-10-03 13:56:40
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