Haba Takes a Major Hit, Downsizing by Around 500 Jobs
In a major shakeup, toy and furniture company Haba announced it would be trimming its workforce by around 500 jobs. Managing Director Mario Wilhelm broke the news on Tuesday, as part of a strategic reorganization. The company will offer affected employees a chance to transfer to a temporary operation firm, set to run for six months. The company's headquarters in Bad Rodach, Upper Franconia, plans to have around 1000 employees on board in the future.
Haba filed for self-administrated insolvency in September, with Martin Mucha, the general representative, indicating that the proceedings should conclude by the end of February. The company is keen to regain local authority contracts, which contribute significantly to its revenues. However, these contracts cannot be signed with insolvent firms.
The metal industry, like Haba, has been grappling with its own set of challenges. Many companies have opted for downsizing and restructuring to stay afloat. Despite the downsizing, Haba remains committed to maintaining its German operations.
IG Metall union representative Nicole Ehrsam commended the transfer company solution, though she stressed the management's responsibility to steer the company back on course and regain public trust. Haba further announced its plan to divest the children's furniture production site in Eisleben, Saxony-Anhalt by January 1. The company will concentrate on producing high-quality toys and games, promoting children's development.
Behind the Scenes:
Haba, a renowned German toy manufacturer, has been active in strategic alliances and market expansion. In July 2024, Toy World Magazine reported their successful restructuring process. The company is currently focusing on partnerships, such as its collaboration with Asmodee France, set to roll out from February 1, 2025. This partnership will allow HABA to reach new target groups and drive joint success.
Challenges faced by the toy industry include intense competition and counterfeit products flooding the market. Nonetheless, HABA remains optimistic about its future, leveraging strategic partnerships to strengthen its position in the European market.
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[2]: [Toy World Magazine, July 26, 2024] [3]: [Asmodee France Press Release, Date not provided]
