Fozzy Group Begins Layoffs After Series of Russian Attacks on Logistics
Fozzy Group will change its organizational structure starting November 1 and reduce part of the employees in the holding's office teams, the Silpo chain, and the logistics division. The company links the decision to rising losses after a series of Russian attacks on its trade, production, and warehouse infrastructure.
Employees were informed about the upcoming changes on September 25 at internal meetings, the company told Forbes Ukraine and NV Business. Fozzy Group does not specify exactly how many employees will lose their jobs.
According to the company, from August 1 to September 25, more than 20 of its facilities were destroyed or damaged as a result of Russian strikes. These include distribution centers, supermarkets, and production facilities. The group lost part of its infrastructure and inventories, making it more difficult and expensive to ensure uninterrupted operations.
In these circumstances, Fozzy Group is reviewing its priorities and expenses. Some projects and tasks will be suspended, the company intends to abandon some, and for others new solutions will be sought.
It is not a halt to hiring across all divisions. The group continues to recruit employees for operational positions in supermarkets, warehouses, and production, while simultaneously restoring damaged facilities and rearranging logistics.
Fozzy Group promises to help employees who are laid off find further employment. The company is ready to provide references, help prepare resumes, and offer suitable vacancies both within the group and at other companies.
The current decision is a continuation of the cost-cutting program that Fozzy Group began after the Russian attacks in August. At that time, the group suspended bonus payments for the third and fourth quarters, autumn salary reviews for office employees, the voluntary medical insurance program, and hiring for some office vacancies.
In August alone, Russian attacks damaged 10 Fozzy Group distribution centers that supplied goods to Silpo, Thrash! Trazh!, Fora, and Fozzy. The company had to promptly change delivery routes and seek new warehousing capacity.
Despite the reduction of part of the office staff, the need for employees in operational divisions remains high. In early September, Fozzy Group Logistics and Silpo reported 1614 open vacancies: 940 of them were in logistics, another 535 in supermarkets, and 139 in production.
Fozzy Group manages major Ukrainian chains Silpo, Fora, Thrash! Trazh!, and Fozzy hypermarkets, and also operates in e-commerce, food production, agriculture, IT, and other fields.
