Serbia Cargo Plans to Lay Off Over 420 Workers Due to Poor Performance

Public company "Srbija Kargo" plans to lay off 424 employees by the end of June 2026, citing poor business performance. The company's acting director, Dušan Đukić, submitted a proposal for resolving surplus employees in 2026 to railway unions for their opinion.

The proposal, based on the 2026 business plan, aims to reduce the workforce to 1,250 employees. Currently, 1,827 positions are filled out of 2,340 systematized jobs. The company seeks to reduce the number of jobs by 935 and employees by 424 to optimize operations and align with business needs.

“

Having in mind that as of May 21, 2026, there are 2,340 systematized workplaces in the Company, of which 1,827 are filled, in order to optimize the Company's operations and adapt the organization of work and systematization of jobs to the planned business needs, it is necessary to reduce the number of workplaces by 935, i.e., reduce the number of employees by 424 employees.

Restructuring is driven by financial, economic, and organizational factors. "Srbija Kargo" has experienced continuous unprofitability, with its gross margin insufficient to cover direct, operational, and other costs. The company also faces a weakening market position, with a relative decline of over 50% in the last seven years.

Compared to listed companies and competitors, "Srbija Kargo" has the lowest indicator of transported goods per employee. The proposal has been sent to trade unions and the national employment organization for their opinions and proposed measures, including retraining and new employment initiatives.

“

With the current volume of business, the gross margin is not sufficient to cover high direct costs, as well as other operational and other costs. In addition, the Company also records an accelerated weakening of its market position, with a tendency for further decline, with a relative decline of over 50 percent in the last seven years.