What drives large companies to cut jobs? Analysis of group layoffs in Poland in the period 2016–2024

Abstract

Motivation: Since the beginning of 2024, much information has been regarding waves of mass layoffs in Poland. Some media in early 2024 reported that the number of collective redundancies was alarming. Such information may make one wonder whether this state of affairs is different from the data from previous years (the study includes the period from 2016).
Aim: This article presents the number of collective redundancies in the post-pandemic period compared to previous years and the reasons that induce employers to reduce employment through collective redundancies.
Materials and methods: The study was carried out by analysing selected large companies that made, or reported, a plan to carry out collective redundancies in the post-pandemic period. In addition, the scale of the number of such redundancies in Poland over 2016–2024 was compared. The analysed companies were also compared in terms of the PKD section to which they belong, which allowed to conclude as to what were the main reasons for the collective dismissals. The materials for the study were taken from the EMIS database and collected through direct contact with provincial labour offices.
Results: The analysis confirms that the number of collective redundancies carried out varies from 2016 to 2024, but remains at a similar level. Furthermore, it is possible to distinguish the sections of the economy where this situation occurs most frequently. The most significant number of collective redundancies during the analysed period were made in the sections related to industry and trade. This makes it possible to conclude that the most frequent reasons for redundancies are restructuring, poor financial situation, or broadly defined exogenous causes, which have been described in more detail in this article.