PKP Cargotabor, a subsidiary of PKP Cargo, has announced consultations for mass layoffs due to severe financial difficulties and halted orders.
Financial Woes Prompt Layoff Consultations
PKP Cargotabor, a subsidiary of PKP Cargo specializing in the maintenance and modernization of railway rolling stock, has announced its intention to initiate mass layoffs. The company is engaging in consultations with trade unions following severe financial challenges, including halted repair orders from PKP Cargo and unpaid debts. These issues have led to PKP Cargotabor filing for restructuring and bankruptcy protection. The scale and timing of the layoffs will be determined after these consultations.
Court Orders Asset Protection Amid Restructuring Efforts
In response to the company’s financial turmoil, the Warsaw District Court has appointed a temporary judicial supervisor to secure PKP Cargotabor’s assets. This move follows PKP Cargo’s own restructuring proceedings, which began in late July and include significant job cuts. PKP Cargo, the largest rail freight operator in Poland, faces substantial financial strain, leading to plans to reduce its workforce by up to 30%, affecting over 4,000 employees. The restructuring aims to restore the economic health of both PKP Cargotabor and its parent company.