Renowned Furniture Company Halts Production in Zamość. 161 People May Lose Their Jobs
Translated from Polish and summarized by DistantNews. Read the original for the full story.
At a glance
- The furniture company Black Red White (BRW) is phasing out production at its Zamość facility, potentially leading to 161 job losses.
- Production will be moved to other BRW plants in Biłgoraj and Mielec, with some Zamość employees offered positions elsewhere.
- The company cites increased costs for energy, fuel, transport, and labor, along with decreased export orders, as reasons for the restructuring.
A significant blow has been dealt to the local economy of Zamość as Black Red White (BRW), a prominent Polish furniture manufacturer, announces the cessation of production at its facility there. This decision will impact 161 employees, who face potential job losses as the company shifts its manufacturing operations to Biłgoraj and Mielec. While BRW states that logistical and warehousing functions will remain in Zamość, the core production activities are being relocated, signaling a major shift for the region.
BRW attributes this restructuring to the mounting pressures facing the Polish furniture sector. The company points to a confluence of factors, including a decline in export orders from Western Europe, coupled with escalating operational costs. These rising expenses encompass energy, fuel, transportation, wages, local taxes, and infrastructure maintenance. To remain competitive, BRW aims to consolidate its production in facilities that offer higher technological efficiency, a strategic move that unfortunately comes at the expense of the Zamość workforce.
Despite the challenging news, BRW has attempted to mitigate the impact by offering some employees positions at its other locations, primarily in Biłgoraj. The company also released a statement acknowledging a difficult financial year in 2025, marked by a significant downturn in performance. However, BRW asserts that its recovery plan is yielding positive results, with projections for a substantial increase in EBITDA and improved financial liquidity by the end of 2026. The company also emphasized its secured financial backing from owners and banks, with extended credit lines, suggesting a commitment to navigating these turbulent times.
Originally published by Rzeczpospolita in Polish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.