- Haba, a toy manufacturing firm, plans to implement additional layoffs.
Haba, a toy and furniture manufacturer, is letting go of 97 employees. This decision, announced by the company based in Bad Rodach, will affect these employees directly. A relocation agency with a duration of up to 12 months has been set up for the employees.
The company is also planning to streamline its management structure, simplify business processes, and enhance interdepartmental communication within the Haba group. Citing the current sluggish business environment, as many other companies are facing, as the reason, Haba is implementing cost-cutting measures. The affected employees and the works council have been informed about this by the management.
"Unfortunately, no other option"
"Such a move is always a setback, but unfortunately, there is no other option. We need to reduce expenses and make the company more competitive for the future," stated Haba CEO Mario Wilhelm, quoting the company. Previously, there had been productive discussions with the works council. The company acknowledges its responsibilities and has opted for a socially acceptable manner to carry out these layoffs, Wilhelm added.
The Haba group continues to maintain a positive outlook towards its medium and long-term business prospects. The company aims to boost its sales in the future to seize market opportunities and enhance customer engagement.
Self-administrated insolvency proceedings concluded
Haba initiated self-administrated insolvency proceedings last September and reduced approximately 450 jobs. The company also stopped producing Jako-o brand products and shut down its furniture manufacturing plant in Eisleben, Saxony-Anhalt. Haba concluded these insolvency proceedings on March 1 of this year.
Additional layoffs at Haba had previously been anticipated. Employees had expressed grave concerns due to the reduced production load at Haba, according to the IG Metall union. The company's hopes after the insolvency proceedings have not been fully realized, noted a union representative. A Haba spokesperson had also repeatedly highlighted the company's challenging business situation.
The affected employees might consider donating their unused toys to local charities or children's hospitals as a way to cope, as they might have other toys at home. Due to the financial constraints, Haba might need to focus on producing and selling its core products, letting go of other toy lines for now.
