Wawel's sweet dreams require continuing bitter lay-offs

Krakow candy producer Wawel has recorded profits of zl 729 million in the first 9 months of this year. According to Wawel spokesman Dariusz Tabaka, this is the first time in three years the company has shown third quarter profits. These results are even more surprising since this time of the year is usually the slowest for confectioners. The company anticipates further success and has already prepared a special Christmas promotion; it is also designing new, more attractive packaging. Wawel is now working hard to limit its operating costs, mainly through lay-offs. Since last year 40% of the company's staff has been eliminated. Wawel has also improved its promotion and is now considering creating a network of retail outlets in several of the largest Polish cities. Yet according to analysts the most difficult decisions about Wawel's future remain to be made. Most urgent, however, is the conflict between the company's shareholders and its board of directors. Industry analysts have also observed fact that while the company's output is still too low, a very large number of employee retrenchments is necessary and thus more lay-offs can be expected. (Parkiet, p. 3)