The Polish freight rail operator announced its decision to send a third of its employees on forced leave starting from June 1 to reduce expenses, this is reported by the railway transport news portal Railway Supply.

PKP Cargo loses money

Employees sent on forced leave are promised social payments amounting to 60% of their wages.

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The company explains the necessity of these cost-cutting measures due to a sharp decline in company revenues amid reduced demand for freight transport coinciding with capital problems.

Over the past five years, from 2019 to 2023, PKP Cargo’s freight turnover decreased by 17%.

Volumes of bulk and metallurgical cargo transportation halved, while container transportation decreased by 40%.

PKP Cargo’s revenue from freight operations in 2022 and 2023 amounted to approximately 5.5 billion zlotys ($1.4 billion), which is 30% higher than in 2020-2021.

Operating profit decreased by 13% last year, and net profit nearly halved.

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