Ypres (Brussels Morning Newspaper): Picanol, a Belgian textile machinery maker, is facing a global slowdown, which has put many of its 1,400 employees on temporary unemployment. Union leader Stefaan Williams noted fewer layoffs than expected. Despite these difficulties, Picanol gave employees a €750 bonus last year, costing approximately €1.2 million.
Picanol, a Belgian company that produces textile machinery, is facing challenges due to a global economic slowdown that began last summer. The demand for their machines has dropped significantly, leading to low sales and a tough business environment. Picanol has placed many employees in a temporary unemployment scheme to cope with this, allowing them to stay home with partial pay. This strategy aims to manage costs without making immediate layoffs.
Is Picanol’s workforce reduction a necessary step amid economic challenges?
It has been noted that the textile machinery industry is facing challenges due to decreased global trade and investment, which are causing significant problems. Picanol’s choice to reduce its workforce is essential for its long-term stability, highlighting the difficult decisions many manufacturing companies are facing.
According to Stefaan Williams, the union leader at Picanol, it’s sad to see workers lose their jobs, even though layoffs were expected. He mentioned that people were confused but relieved that not many workers were affected. Williams hopes the economy will get better in 2025, which could help keep current employees. Picanol has announced there won’t be more layoffs for now, but this depends on the global market. The company mainly sells its machines to Asia and has about 1,400 workers. Last year, even with many on temporary unemployment, employees in Ypres received a bonus of 750 euros, costing the company around 1.2 million euros.
