Saturday, June 06, 2009

Bioton announces plan to axe 27% of Polish workforce

Insulin producer Bioton has officially informed the Labor Office of a plan to carry out mass lay offs from its current workforce of 635. The firm intends to reduce the number of staff by 170 employees with the first redundancies to begin in June.

"The reductions are the effect of the deteriorating economic situation and the necessity of limiting costs. The firm has to liquidate some jobs," reads Bioton's announcement to the Labor Office. The firm did not provide the anticipated savings it expects to make from the planned move, but analysts are surprised with the scale of redundancies nonetheless.

"I believe that the firm will incur costs of zl.25 million due to the restructuring of the Polish unit, including the costs of severance packages for employees," said Pawel Burzylski, an analyst with DM BZ WBK. However, according to his calculations the optimization of Bioton's employment level will enable the company to boost its operational result by some zl.11 million in 2010.