- Challenging business climate: Haba plans to reduce workforce by nearly 100 positions
Troubled Toy and Furniture Producer Haba Fails to Gain Ground: 450 Positions Slashed Over New Year, 97 More to Follow
Struggling toy and furniture manufacturer Haba, located in Bad Rodach, Bavaria, is still battling to find stability. The firm has already dismissed around 450 employees around the New Year and now intends to let go an additional 97 staff members. Haba has agreed upon a relocation company that could last up to 12 months for the affected employees, the company stated.
In the pursuit of financial optimization, the management ranks will be reorganized, business procedures will be streamlined, and connections within the Haba corporate group will be enhanced. Haba attributes the current poor business conditions, akin to many companies in diverse industries, as the reason for these changes. The entire workforce and those directly affected were informed about this by management and the works council on Monday.
"Regrettably, no alternative"
"Such a decision is always a hard pill to swallow, but unfortunately, there is no alternative. We need to reduce costs and make the company competitive for the future," stated Haba CEO Mario Wilhelm, quoting the company. Previously, constructive discussions had taken place with the works council. The company is well-aware of its duties and has devised the personnel changes in a socially acceptable manner, Wilhelm claimed.
Haba still maintains an optimistic outlook for its mid- and long-term business potential. The company aims to enhance its distribution in the future, thereby seizing market opportunities and drawing Haba closer to customers once more.
In September of the previous year, Haba filed for insolvency in self-administration and cut around 450 jobs during the process. Haba also phased out the Jako-o brand and parted ways with its furniture production site in Eisleben, Saxony-Anhalt. Haba finished the insolvency process on March 1 of this year.
Metallick: Issues Yet to Be Resolved
From Metallick's perspective, Haba's recent redundancies come as no surprise. Employees had conveyed great anxiety to the union in June, as production was not at full capacity, according to the staff. The recent actions taken by the company indicate that Haba's issues have not been completely resolved even after completing the insolvency procedure, claimed a spokesperson from Metallick in Coburg. It remains to be seen whether Haba can generate larger sales again in the coming months.
Decent news is that a relocation company will be available for the 97 affected employees. The model has proven successful for numerous ex-Haba employees in the past. As announced by the union at the end of June, more than 70 percent of the approximately 230 former Haba employees who moved to a relocation company on January 1 have secured new positions.
Despite the challenging business situation, uncertainty surrounds Haba employees, Metallick stated. A Haba spokesperson had previously described the business development as difficult.
In an effort to improve financial performance, Haba plans to restructure its management and streamline its business processes, which may involve letting go of additional 97 employees. Despite the company's recent insolvency and job cuts, other affected employees have found success through relocation companies.
Faced with ongoing financial challenges, Haba has decided to reduce costs and let go of more employees, a move that has been met with distress among its workforce. However, the company has a history of providing successful relocation opportunities for its terminated staff.
