EMCC European Monitoring Centre on Change

Egles sanatorija

Company/Organisation:
Egles sanatorija

Geographic Location

Country: Lithuania
Region: Alytaus apskritis; Lietuva
Location of affected unit(s): Druskininkai

Company

Sector: Health / social work
Human health services
86.90 - Other human health activities
Number Employed: 520

Employment Effects

Announcement Date: 16-11-2020
Planned Job Reductions min: 178
Type of Restructuring: Internal restructuring
Foreseen End Date: 31-03-2021
Direct Dismissals: 178

Additional Information

The Lithuanian medical SPA Egles sanatorija is to dismiss 266 employees in Druskininkai by the end of March 2021. The dismissals are related to the COVID-19 pandemic.

According to management, with the onset of the COVID-19 crisis, the number of new bookings in Egles sanatorija has significantly fallen. Most of the workers were put to downtime during the first quarantine that was declared in Lithuania on 16 March 2020. However, the second wave of the pandemic reduced the number of new bookings by 90% and the company decided to dismiss around a half of its employees.

The company will mainly dismiss employees whose workload directly depends on the customer flows: cleaning, catering, customer registration, and medical support staff. The redundancy process will be carried out in several stages, with the last group of the warned employees leaving the company in March 2021. Employees will be handed out layoff notices as soon as a list of redundancies has been drawn up.

The company will consult with the works council when compiling the list of redundancies. The management has also announced that 90 employees will be dismissed in another company Birstono saltinis managed by Egles sanatorija in Birstonas.

The medical SPA Egles sanatorija in Druskininkai can host up to 1,300 people and it is one of the largest medical SPAs in the Northern Europe. It has been servicing visitors for more than 48 years since its opening in 1972.

Updated, 17/12/20: On 11 December 2020, Egles sanatorija announced that it will lay off 178 employees instead of 266 in Druskininkai. According to the management, the company decided to lay off fewer employees reacting to the news that the Government plans to extend the payment of wage subsidies in 2021. Currently Egles sanatorija employs 520 people in Druskininkai.

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