Zetor Tractors, a manufacturer of tractors, will lay off 160 employees by the end of July.
This is more than half of the current 300 employees. The Czech company cited changes in production as the reason for the mass layoffs. Last fall, Zetor announced that it would cease production of its own engines and transmissions in Brno.
However, development, marketing, sales, and tractor assembly for Europe and the USA will remain. The production changes are planned to start in 2025.
“In addition to the statutory severance pay, employees will receive enhanced severance according to the collective agreement. We will provide them with job search assistance, resume writing help, and organize meetings with the employment office. We will also connect employees with recruiters from other companies in Brno who will certainly reach out to us,” said company spokeswoman Lucie Dušková.
“I am particularly sorry for the employees who are only a few years away from retirement and are very dedicated. They have worked here for decades and stayed with the company despite all the turbulence, not seeking work elsewhere. Now, they will have trouble finding new jobs,” said Zetor’s union leader Alois Kazelle.
Declining Revenues and Sales
According to the broadcaster, the tractor manufacturer has seen declining revenues and sales over the past ten years. Through changes in the production process and other measures, it aims to reduce annual costs by 200 million Czech korunas.
“We are achieving cost reductions by increasing work efficiency among both workers and technical-economic employees, digitization, energy consumption savings, and significantly reducing the factory’s production and storage spaces.
Czech Television noted that Zetor has been reducing its workforce for ten years. In 2014, it had 783 employees. In 2018, it announced larger layoffs, with around forty percent of the workforce expected to leave.
Ultimately, instead of the projected 250 employees, 145 left. According to the latest available annual report for 2022, 127 employees left the company during the year, leaving 349 employees at the end of the year.
