Internal restructuring
Yuzhna Bulgaria; Yugozapaden; Sofia
Location of affected unit(s)
Sofia,Blgaoevgrad, Stara Zagora, Sliven
Manufacture Of Tobacco Products
Manufacture Of Tobacco Products
12 - Manufacture of tobacco products

450 - 500 jobs
Number of planned job losses
Job loss
Announcement Date
12 October 2006
Employment effect (start)
1 January 2006
Foreseen end date
31 December 2006


The management of tobacco monopoly Bulgartabac Holding intends to start negotiations with the trade unions on a program of staff lay-offs, executive director Hristo Lachev said on 11 October 2006. He announced that the estimated redundancies would not be made public before the end of the negotiations with the trade unions. According to the Independent trade union federation of tobacco workers the dismissals have already started and the total number of job cuts will be about 450-500. The Bulgartabac subsidiaries being prepared for privatisation have already implemented their redundancy programmes. At the moment, the company employs 2,700 workers. The payroll downsize will have the worst effect on the cigarette factory in Blagoevgrad, which is the biggest one and has the largest workforce amounting to 1,250 people, with annual output of 12,000 tonnes (the industry standard is 300 workers per 10,000 tonnes of annual production).

The forecast for the financial performance of the four Bulgartabac cigarette factories in the first nine months in 2006 indicates a decline in profits.

A total of 11 holding subsidiaries should be sold until the end of 2006.

A political decision will be required for the fate of the four cigarette factories and the three tobacco processing plants that will remain in the holding structure.



Eurofound (2006), Bulgartabac, Internal restructuring in Bulgaria, factsheet number 64238, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/64238.