EMCC European Monitoring Centre on Change

Decodom

Company/Organisation:
Decodom

Geographic Location

Country: Slovakia
Region: Nitriansky kraj; Zapadne Slovensko
Location of affected unit(s): Topolcany

Company

Sector: Manufacturing
Other manufacturing, and repair and installation of machinery and equipment
31.0 - Manufacture of furniture
Number Employed: 1170

Employment Effects

Announcement Date: 30-03-2020
Planned Job Reductions min: 903
Planned Job Reductions max: 903
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-05-2020
Direct Dismissals: 903

Additional Information

Slovak furniture producer, Decodom, based in Topolcany, will dismiss more than 900 out of 1,170 employees. Massive job cuts are attributed to the COVID-19 outbreak The government has mandated closure of most retail outlets since 16 March 2020. This  has affected 17 Decodom shops in Slovakia. Due to COVID-19, the company has also trade customers in Austria, Czech Republic and Germany. Because the company operates according to the orders from customers on a weekly basis the management decided to stop temporarily the production. According to the Decodom CEO, Vladimir Sramek, the monthly labour costs in the company are around €2m and the measures proposed by the government to support affected employers will not be sufficient to maintain employment. As the retail ban continues the management announced mass dismissals to the employment office.

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