Haba's Transformation and Job Changes in Coburg
Facing some challenges, beloved toy and furniture manufacturer Haba from Coburg, Germany, has decided to reorganize its operations. This restructuring includes the potential loss of up to 500 jobs, primarily at the company headquarters in Bad Rodach, Upper Franconia. However, Haba plans to establish a transfer company to assist affected employees during this transition period. Around 1000 employees will continue to work at the headquarters, ensuring the continuity of operations in the region.
The Managing Director of Haba Familygroup, Mario Wilhelm, shared these updates on Tuesday, following extensive negotiations with the owner family and the Works Council. The company aims to complete its insolvency proceedings, which began in September, by the end of February, and then bounce back swiftly. The General Representative Martin Mucha noted that Haba expects to secure numerous orders from local authorities in the new year, contributing significantly to the company's revenue.
Moving forward, Haba is committed to focusing on high-quality toys and games to promote development. Sales Manager Stefanie Frieß emphasizes the need to catch up on setting up daycare centers throughout Germany. Haba Pro, which has been a long-time market leader in furniture for childcare facilities, stands to benefit from this strategy.
Meanwhile, the production site for school furniture in Eisleben, Saxony-Anhalt, is slated for sale on January 1. The new owner will absorb over three quarters of the workforce, while the rest of Jako-O clothing division's operations will be discontinued by January 2024.
The IG Metall trade union generally approves of this solution, with Nicole Ehrsam, IG Metall representative in Coburg, pointing out that the transfer company was achieved despite Haba's initial reservations. She underscores the responsibility of Haba's management to lead the company back to stability and regain the trust of its stakeholders.
Despite facing adversities, Haba remains hopeful that its focus on quality products and increased presence in daycare centers will help the company to rebound and thrive in the future.
