Coca-Cola to lay-off up to 165 employees in Lodz

2012-01-11



Coca-Cola HBC Polska plans to lay-off up to 165 individuals in its Lodz production facility, the PAP press agency reported. The company informed the local branch of the NSZZ Solidarnosc trade union about the decision. The lay-offs pertain to employees in production, warehouse and support positions.
Coca-Cola HBC Polska stated that it is moving its production from Lodz to other plants in the aim of increasing efficiency and further strengthening its competitive position. Warehouse services in Lodz will be provided by an external company, which is part of an outsourcing strategy of logistics services started three years ago.
According to Coca-Cola, the decision was caused by difficult macroeconomic conditions and external cost pressure. The company stated that on the one hand it is facing rising prices of raw materials and operating costs, and on the other hand the expectation of consumers that current prices will be maintained. In these circumstances, the company has to improve efficiency and decided to concentrate production capacity.
Coca-Cola’s Lodz facility employs 260 individuals and accounts for 11.3% of its production in Poland, including all of its juices in cartons and glass bottles. Coca-Cola hires over 3,000 people in Poland in four production facilities, 30 distribution centres and its Warsaw headquarters. Its other plants are located in Radzymin near Warsaw, Staniatki near Krakow and Tylicz (Malopolskie voivodship).