Fabryki Mebli Forte plans group layoffs of up to 230 employees

Fabryki Mebli Forte has decided to conduct group layoffs of up to 230 employees and start consultations with trade unions on the matter, the company said. The estimated cost of the job cuts is approximately PLN 7 million.

The management board's decision results from the deterioration of the company's financial situation related to a significant decrease in demand for furniture, which results in the need to take measures to improve operational and cost efficiency and the necessity to adjust the level of employment costs to the current financial and market situation of the issuer. The management's decision to carry out group redundancies is one element of a broader savings programme aimed at adjusting the company's costs to the current market situation, the company announced.

The company's intention is to terminate employment contracts with no more than 230 employees, which represents approximately 10% of the company's total workforce. The redundancies are planned over a period of no longer than 31 January 2024. The company has assured that it will carry out the redundancy process with care for the employees by offering them a range of support measures.

The issuer estimates the amount of the costs of employment reduction at approximately PLN 7 million. The provision related to the group layoffs will be charged to the company's results in the third quarter of the financial year 2023-24 (the financial year 2023-24 covers the period starting 1 April 2023 and ending 31 March 2024). The final cost related to the group layoffs will be reported in the financial statements for the second half of the 2023-24 financial year, Fabryki Mebli Forte further announced.

Fabryki Mebli Forte is a furniture manufacturer, listed on the WSE since 1996. The company had consolidated revenues of PLN 1.27 billion in 2022.

Source: Fabryki Mebli Forte and ISBnews
Photo: Fabryki Mebli Forte