Type
Offshoring/Delocalisation
Country
Estonia
Region
Eesti; Põhja-Eesti;
Location of affected unit(s)
Tallinn
Sector
Manufacturing
Manufacturing Of Furniture And Other Manufacturing
Manufacture Of Furniture
31 - Manufacture of furniture
New offshoring locations
Lithuania, Poland, Ukraine

213 jobs
Number of planned job losses
Job loss
Announcement Date
1 February 2020
Employment effect (start)
1 March 2020
Foreseen end date
31 May 2020

Description

Fleming, a company in Estonia producing soft furniture, dismisses all of its employees, 213 in total, in Tallinn, Estonia. The production will be relocated to units of the company in Lithuania, Poland or Ukraine. The reason for the relocation is a general labour shortage in Estonia and unfavourable regulations and expensive requirements for hiring foreign workforce in Estonia. According to the representative of the company, most of the current workers are approaching retirement age and it will be difficult to find new employees. The restructuring should be finalised by the end of May 2020.

Fleming Group is one of the largest soft furniture manufacturers in the Baltics, having production facilities currently in Estonia and Lithuania. The entire group employs currently around 420 employees. The company has been active in Estonia for 25 years.


Sources

Citation

Eurofound (2020), Fleming, Offshoring/Delocalisation in Estonia, factsheet number 99741, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/99741.