KGHM earmarks zl.150 million to cover redundancies

Copper conglomerate KGHM is planning to create a zl.150 million reserve fund in order to cover the costs of reducing the size of its workforce. The company is currently discussing with auditor Arthur Andersen the possibility of including the full amount in its results for last year. If agreed to, the operation would make it very unlikely that the company would record a profit for 2001. Tomasz Cwintal, analyst with BPH PBK, says, "KGHM will close 2001 with a loss of zl.8 million to zl.10 million. The consolidated loss will be in the region of zl.150 million." The company is planning to reduce its workforce by around 20%. According to KGHM president Stanislaw Speczik, "Early retirement and lay-offs may involve 2,000 to 3,000 people." Analysts describe KGHM's decision to reduce its 18,500 workforce as a sound cost-cutting measure. (Puls Biznesu, p. 4) P.W.