Boxmark Leather continues to cut jobs. The company that manufactures leather for auto seats, airplanes and boats, is also active as a contractor. Headquartered in Austria, it has many sites in Europe and around the world, one of which is in Slovenia. The company presented a restructuring plan for this location in which it plans to cut about 280 employees, with the possibility of increasing the amount to 350.
Boxmark continues to cut jobs
Boxmark Leather has over 1,000 employees in Slovenia, and in November announced it was going to cease activities in the Murska Sobota site and only keep the Kidricevo location open. But now the situation has changed. The reasons behind the decrease in personnel, according to what declared by the company’s executives to Slovenian radio station Rtv, are tied to the slowdown in orders from the automotive segment and the new crisis of most markets due to Covid-19.
The company had announced 900 layoffs in January, specifying that it didn’t mean 900 people were going to get fired. In some cases the company chose to re-organize work shifts. Nevertheless, the cuts were allegedly inevitavle and ad the end of April the first 288 jobs were eliminated, always according to the same Slovenian station. These new measures that were recently announced will, theoretically, bring the total number of jobs cut to 350. The company’s CEO, Marjan Trobiš explained to the radio channel that orders have decreased by 40% generally and by 80% for the airplanes’ section. Slovenia’s government has pledged measures to support the income of those employed by businesses struggling because of Covid-19. Boxmark Leather has allegedly already announced it plans on moving production to Croatia and Bosnia, while Kidricevo should be kept as the R&D center, which employs 800 people, will be strengthened.
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