Sun, Nov 22 2009

Orgachim laid off 20 per cent of employees in January

Thu, Mar 12 2009 00:23 CET byDnevnik.bg 792 Views
Orgachim laid off 20 per cent of employees in January

Boiko Shoilekov 
Photo: Archive

Orgachim laid off 20 per cent of employees in January

Photo: Anelia Nikolova

Bulgaria’s paint and varnish maker Orgachim has parted ways with 218 employees in January, who account for around 20 percent of its headcount.

The lay-offs are part of the company’s restructuring strategy, showed the fourth-quarter earnings report of investment fund Reconstruction Capital II Limited (RC2), which is a shareholder in Orgachim and holds one of the biggest stakes in Policolor-Orgachim.

The new strategy involves dismissing a third of the group’s total staff of almost 1600 in a bid to streamline costs.

The group’s Bulgarian unit had just more than 1000 people on the payroll in end-2008, according to Orgachim’s financial report filed with the Bulgarian Stock Exchange where it is listed.

The company’s general executive director Boiko Shoilekov confirmed it had lost about 200 jobs at the start of the year, pointing to seasonal factors instead of the slowdown in the global economy.

In the meantime, Orgachim said on March 11 that Shoilekov has stepped down over conflicting views on the company’s management and disagreements over strategic and investment policy.

The company’s operating managers could not be reached for comment by Dnevnik.

Shoilekov is the second key manager to leave Orgachim in the last year. In the summer the company parted ways with then executive director Ivan Sokolov, who took over as head of the local Peugeot dealer, Sofia France Auto. The company gave the same reasons for his resignation.

Source: Dnevnik.bg

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