Polish national rail freight operator PKP Cargo has begun the process of collective layoffs. Those are part of restructuring proceedings that the company is currently undergoing. Hundreds of people stand to lose their jobs, but that is less than initially thought.
PKP Cargo has greenlighted hundreds of layoffs planned for 2025. “This process is caused by the continuing difficult financial situation of the Company and the decline in transport, which means lower demand for labor”, the rail operator stated.
Up to 500 employees will have to leave PKP Cargo, which is less than the initially planned 1,041. The final number of employees to be fired has been reduced after consultations with trade unions. Moreover, there has been an unspecified number of people that have left the company since the announcement of the pending collective layoffs. That has also limited the need to shrink the workforce further.
“The process of terminating employment contracts is expected to be finalised by the end of September 2025, with effect from the end of October 2025”, PKP Cargo writes. It also plans to offer support measures to laid-off employees, hoping to help them find new employment elsewhere.
Layoffs or a termination of the collective bargaining agreement
PKP Cargo had earlier proposed an alternative to the incoming collective layoffs, namely the termination of the collective bargaining agreement. That proposal was not approved, so the rail operator had to resort to letting people go.
The rail freight operator emphasises that it has not yet decided on collective layoffs in 2026. “This will require a re-evaluation of the level of both actual and planned transport work and the Company’s financial situation after the 2025 financial year.”
The collective layoffs in 2024 and those planned for 2025 are part of the implementation of a restructuring plan. It aims to stabilise PKP Cargo’s financial liquidity, repay liabilities, and increase operational efficiency.