Eurotay confirms layoffs near Kraljevo, job cuts unknown
The Turkish company, which employs 494 people in Adrani, blames falling European demand and rising costs but has not said how many workers will go or when.
Eurotay, the Turkish company that has run a clothing factory in Adrani near Kraljevo since 2017, has confirmed that some employees will lose their jobs, but it rejected claims that it is laying off all 500 workers because of political instability. According to the company, the factory currently employs 494 people. Its statement does not say how many jobs are disappearing or from when.
What does Eurotay say about the reasons?
The statement, according to Ozon Press, was signed by the company’s director, Enis Umit, and the company answered N1’s questions in writing. Both documents point to market conditions as the cause: demand in Europe is falling while costs are rising. In its reply to N1, the company writes: “In recent years, demand on the European market has fallen significantly, while production and operating costs have risen.”
Eurotay explicitly rules out political reasons. The statement carried by Ozon Press says:
“Our analyses and the decisions that will be made are based exclusively on commercial and operational reasons; there are no other reasons whatsoever.”
The company adds that the Kraljevo plant faces the same pressure as other clothing manufacturers. Adrani produces items made of denim and other materials, and the garments are also washed and finished there.
How many workers will lose their jobs?
There is no answer to that yet. The company says production will be scaled back gradually and matched to current orders, adding: “Within that framework, production activities will be gradually reduced, and this process will also affect certain jobs.” Neither the number of layoffs nor any deadlines are given.
Eurotay intends to fill existing orders within the deadlines agreed with customers, while also considering new business models with higher added value for its Kraljevo operations. Employees are promised that their rights will be respected, which the director put this way in the statement:
“All legal rights of our employees, including wages, severance pay and notice periods, will be fully respected in accordance with the labor legislation of the Republic of Serbia.”
The company will inform affected workers before the public, and employee representatives and the National Employment Service (NSZ) will be kept informed at every stage of the process. Ozon Press reports that it is still waiting for a reply from the NSZ branch in Kraljevo to its questions about the planned reduction in staff.
What came before the statement?
Earlier this week, Novosti, citing Informer, reported that all 500 workers were being dismissed because of political instability after the change of government, and that the NSZ had already been notified. That report named no source at the company, and Ozon Press writes that Informer’s article did not present documents confirming such a cause. Novosti also wrote that workers would receive their notices on Monday; the company has not given a date.
The official reply departs from those claims on two points: dismissal of all employees is not confirmed, and the stated reason is the market, not politics. All that is confirmed is that production is declining and that certain jobs will be affected. The company also says it will continue its presence in Serbia and its cooperation with institutions.
