Slovenian household appliances manufacturer Gorenje announced it plans to lay off 270 workers out of the current 4,212 employees as part of its reorganisation and business optimisation process.

Gorenje selected China's Hisense Electric Co as its strategic partner in May last year as it sought a partner that would support its long-term and sustainable growth and development. Hisense went on to acquire the Slovenian white goods manufacturer.

Following the takeover, Gorenje has embarked on the restructuring that is expected to see 6% of its workforce laid off. 

“In early March, Gorenje was transformed from a joint stock company into a limited liability company, in order to simplify its corporate governance and pave the way for more efficient management and decision-making within the group that will thus be better positioned to respond promptly to the challenges and changes in a demanding business environment, to reap the synergies with Hisense, and to cut its operating expenses,” Gorenje said.

The appliance maker added that business transformation will be the priority task in all fields of its operations in the months ahead. Consequently, in April Gorenje started the procedures for reorganising the business processes at the level of the entire group, which also includes new organisation and job systematisation at the parent company.

“As a result of business transformation and restructuring, merging of functions, decreasing the number of management levels, and business optimisation, the number of employees at support services in the Group will be decreased,” said the statement. 

According to the company statement, by law Gorenje is required to prepare a redundant worker lay-off programme if more than 30 workers are laid off within 30 days. It said it has already sent its proposals for reorganisation to the trade union and the works council. 

A consultation on the criteria for determining redundant workers was announced for April 25, however, Gorenje said, the trade union and works council announced they would not take part in further consultations and no agreement on the worker redundancy criteria has yet been reached.

Gorenje’s net loss widened to €37.3mn last year from a €4.3mn net loss in 2017. The company’s performance was negatively affected, especially in the second half of the year, by lower than planned sales in the domestic appliances segment.

As well as the layoffs, Goernje is also divesting some of its operations. On April 26, the company announced that the divestment process of Gorenje Surovina had been completed. STA news agency reported earlier in April that Gorenje plans to sell its Serbian subsidiary Gorenje Tiki.