Swedish home appliance giant Electrolux has begun the process of moving part of its production from Krakow to India, which involves collective layoffs. The portal wiadomosci.radiozet.pl reports that up to 200 people could lose their jobs. According to the portal Kresy, the company is offering employees voluntary departure packages on the condition that they train their successors from India. The decision is part of a global restructuring aimed at cost optimization.
Collective Layoffs in Krakow
Electrolux is planning collective layoffs at its plant in Krakow. The portal wiadomosci.radiozet.pl estimates that around 200 people could lose their jobs. Propertynews.pl confirms the information about major layoffs, and this process is already underway.
Production Move to India
The main cause of the layoffs is the decision to move part of the production from Poland to India. This is a strategic move by the corporation aimed at reducing operational costs and increasing supply chain efficiency within global competition.
Voluntary Departure Program
According to reports from the portal Kresy, the company is offering employees the possibility of voluntary departure. However, the proposal comes with a condition – these employees would first have to train their Indian successors, who will take over their duties.
Swedish home appliance giant Electrolux confirmed in the final days of February 2026 the implementation of restructuring plans that will directly impact its Polish branch. A key element of this strategy is the relocation of part of the production lines from the plant in Krakow to India. The direct consequence of this decision is the announced collective layoffs. The portal wiadomosci.radiozet.pl was the first to report the scale of the reduction, stating that "up to 200 people" could lose their jobs. This information was later confirmed by the portal Propertynews.pl, writing about "major layoffs." The process is already official and underway. Details of the employee departure conditions were revealed by the portal Kresy. Its reports indicate that Electrolux is proposing a voluntary departure program to part of the workforce. However, this offer is not unconditional. Employees who decide to take it would, in exchange for severance pay, have to train their successors – workers recruited in India who will take over their positions. This practice, while ethically controversial, is becoming part of knowledge management during production relocation. For the corporation, it means securing process continuity; for Polish workers, it means an additional, psychologically difficult duty as part of the dismissal procedure. Electrolux, founded in 1919, has been one of the global leaders in the home appliance market for decades. Its expansion in Central Europe, including Poland, often occurred through acquisitions of local, historic brands, such as the Polish Polar. The trend of moving production from Western and Central Europe to countries in South and Southeast Asia has been observed for several decades, driven mainly by lower labor costs and the dynamically developing consumer market in those regions.The decision by Electrolux fits into a broader trend among global corporations, which, in pursuit of cost optimization and proximity to growing sales markets, are relocating production capacity. For Krakow and the Lesser Poland region, this means not only the direct loss of jobs for several hundred people but also negative indirect effects for local suppliers and service providers cooperating with the factory. A reaction from trade unions is expected, as they will negotiate departure conditions and severance amounts. Local governments and labor market agencies will have to prepare professional activation programs for the laid-off workers. Electrolux has not yet published an official, detailed statement regarding the relocation schedule and the exact number of layoffs, which leaves room for speculation and uncertainty among the workforce.