EMCC European Monitoring Centre on Change



Geographic Location

Country: Croatia
Region: Požeško-slavonska županija; Kontinentalna Hrvatska; Hrvatska
Location of affected unit(s): City of Pozega


Sector: Manufacturing
Manufacture of food products, beverages and tobacco products
10.82 - Manufacture of cocoa, chocolate and sugar confectionery
Number Employed: 280
Group: Zvecevo Group

Employment Effects

Announcement Date: 10-03-2020
Planned Job Reductions min: 100
Planned Job Reductions max: 100
Type of Restructuring: Internal restructuring
Employment Effect Start: 16-03-2020
Foreseen End Date: 17-04-2020
Direct Dismissals: 100

Additional Information

The chocolate manufacturing company 'Zvečevo' in the city of Požega shuts down a part of its production and dismisses 100 workers. The reasons to cut production are the negative market trends during the year 2019 and the negative projections for 2020. After several months of analysis of all production and business processes, the company is forced to initiate the process of consolidation of the entire business with a focus on the profitability of the product range and the stability of the firm. Consequently, the company's management board decided to cease production of certain products, reorganise production processes on all production lines, and optimise work processes in non-productive sectors.

The company stated that for the selection of the redundant staff, criteria include the age of the workers, their working experience and the number of his or her dependent family members. Regarding severance payment, all dismissed employees will exercise their rights according to the Labour Law and the Employer's Labour Regulations.