Rising costs force Zywiec into 30% staff reduction

Poland's largest brewer, Zywiec, is reportedly planning to lay off around 30% of its workforce over the next three years. According to analysts, the restructuring could cost as much as zl.100 million. However, company representatives have declined to confirm the figures. "As yet, there are no detailed plans concerning the reduction of employment in the group. Costs in the brewing industry have risen, and in order to stay competitive on the market we have to reduce them," said Krzysztof Rut, corporate director of the Zywiec Group. In the first seven months of the year, the Zywiec Group, which is controlled by Heineken, sold 4.6 million hectoliters of beer, only slightly more than the 4.4 million hectoliter sales figure achieved by its main competitor Kompania Piwowarska, owner of the Lech and Tychy brands. However, Kompania Piwowarska has a staff of just 2,500, compared to the 3,500 workers Zywiec will still be employing even after the planned redundancy plan is completed in 2004. (Puls Biznesu, p. 6) A.K.