EMCC European Monitoring Centre on Change

Zagreb Holding

Company/Organisation:
Zagreb Holding

Geographic Location

Country: Croatia
Region: Grad Zagreb; Kontinentalna Hrvatska; Hrvatska
Location of affected unit(s): Zagreb

Company

Sector: Public administration and defence
Public administration and defence; compulsory social security
84.2 - Provision of services to the community as a whole
Number Employed: 7900
Group: Zagreb Holding

Employment Effects

Announcement Date: 09-11-2021
Planned Job Reductions min: 740
Planned Job Reductions max: 750
Type of Restructuring: Internal restructuring
Employment Effect Start: 15-12-2021
Foreseen End Date: 31-01-2022
Direct Dismissals: 750

Additional Information

The Zagreb Holding is a city-owned enterprise which comprises various public services (water, sewages, cleaning, public transport and cemeteries). The company announced to the trade unions that there are 750 redundant people, mostly in the administration roles.

The financial results of the Zagreb Holding have been negative for many years. The company also faced constant critiques that it had too many employees, in particular in administrative duties.

A meeting of the Holding's management was held on 9 November 2021, and it was decided that the layoffs should start between the end of 2021 and the beginning of 2022. The management deems that there is a need to begin with measures for improving the business efficacy as well as with the reduction of administrative costs. The goal is to negotiate on the reorganisation and to resolve the surplus in the administration staff, primarily by digitalising the system.

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