Toy manufacturer Haba cuts 100 jobs despite bankruptcy

by times news cr

2024-08-27 04:54:37

Even after the end of the insolvency proceedings, the Haba company is not at peace. Now the toy and furniture manufacturer is cutting jobs again.

The struggling toy and furniture manufacturer Haba is not finding peace: At the turn of the year, the company already cut around 450 jobs, and now 97 more employees have to go. A transfer company with a term of up to 12 months has been agreed for those affected, the company, based in Bad Rodach in Upper Franconia, announced.

As part of the cost-cutting measures, the management levels are to be streamlined, business processes simplified and interfaces within the Haba Group improved. Haba says the reason for this is that, like many other companies in various sectors, business is currently developing weaker than planned. The entire workforce as well as those directly affected were informed on Monday by the management and works council.

“Such a measure is always a cut, but unfortunately there is no alternative. We have to reduce costs and make the company competitive for the future,” the company quoted managing director Mario Wilhelm as saying. There had previously been constructive discussions with the works council. The company is aware of its responsibility and has designed the personnel measures in a socially acceptable manner, said Wilhelm.

Haba continues to view medium and long-term business opportunities as positive. The company wants to strengthen sales in the future. This will enable it to take advantage of market opportunities and bring Haba closer to its customers.

Last September, Haba entered into insolvency proceedings under its own administration and cut around 450 jobs in the process. The company also discontinued the Jako-o brand and separated from its furniture production site in Eisleben in Saxony-Anhalt. Haba ended the insolvency proceedings on March 1 of this year.

From the perspective of IG Metall, the cuts that have now been made are not surprising. Employees had already reported to the union in June that they were feeling very uncertain, as production was not running at full capacity, according to the employees. The company’s current step shows that Haba’s problems are not over even after the end of the insolvency proceedings, said a representative of IG Metall in Coburg. Now it remains to be seen from month to month whether Haba will be able to generate greater sales again.

The fact that there will be a transfer company for the 97 affected employees is, however, to be seen as positive. The model has proven successful for many former Haba employees. As the union announced at the end of June, more than 70 percent of the approximately 230 former Haba employees who were transferred to a transfer company on January 1 have found new work.

However, due to the difficult business situation, there remains great uncertainty for Haba employees, said IG Metall. A Haba spokeswoman had also previously repeatedly described the business development as difficult.

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