In the near future, employees in the Czech Republic will face something that many could not imagine. Namely, layoffs to a greater extent. The economy has been facing major problems for the fifth year, and instead of growing, it is declining even more.
It couldn’t be held any longer
In short, this must manifest itself one not-so-beautiful day. The first swallows are already here and apparently we will soon say goodbye to what we could be proud of as a country. Long-term unemployment of around three percent is indeed a great achievement that almost no one in Europe can be proud of.
But even here these golden times simply end. Companies get into trouble and some even go bankrupt. The important company Laufen, which is engaged in the production of sanitary ceramics and bathrooms, has now communicated very unpleasant news to its employees.
It turned out that the demand for its products is falling steeply, which is related, among other things, to the decline in the construction industry. At the same time, the two plants that the company operates cannot be kept going indefinitely, if they are only producing at half throttle. And so one of them, located in Znojmo, is dramatically reduced. At the same time, it is possible that it will eventually be completely closed.
More will be added
Even now, however, 250 employees will lose their jobs at once. At the same time, it is not the case that they have been moved elsewhere. They will simply have to find a completely new job. According to Laufen, there are several reasons and they reinforce each other. First of all, there is a drop in demand for the company’s products, but secondly, a rapid increase in energy prices. These have not returned to their original level, so any production is very expensive. However, the company also mentioned the third reason, which is definitely not a good business card for the Czech Republic. She stated that domestic legislation is also to blame.
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According to experts, similar cases may increase rapidly. After all, even Škoda Auto, which represents the largest employer in the country and has been recruiting practically constantly, has stopped recruiting new workers. However, it has now announced a gradual reduction in the number of employees. For now, it will not be a classic layoff, but rather a restriction on the basis of turnover. But even layoffs can eventually come.