st. Mass layoffs in Gallen: mask maker Flawa lays off 49 of 67 employees

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The verdict was clear: Flawa Consumer AG is deploying 49 of its 67 employees at its Flawil SG facility on the street. As Blick reports, management had already briefed the workforce about the plight two and a half weeks ago.

The company is about to exit. “At the time of the former parent company’s decision to move its cotton wool business to the US, Flawa Consumer GmbH sees that immediate layoffs are inevitable,” a media spokesperson wrote in a statement. After that order fell, the company was on the verge of collapse.

Reorganization to save the company

With the restructuring, the management wants to turn things around so that Flawa Consumer GmbH can continue to operate economically in the future. Socially acceptable and fair solutions will be developed for affected employees. They should be supported, for example, when looking for a job. A social plan was also prepared.

Former American parent company US Cotton, wholly owned by Flawa Consumer GmbH, had moved the production of cotton products to the USA. Lost orders from US Cotton cannot be replaced by new third party orders in Flawa in the near future. As a result, more than half of Flawa’s sales will be lost.

Management took over the company

To avoid the complete shutdown of the company in Flawil, its management members acquired Flawa Consumer GmbH through a holding company at the end of June. This is the new owner of Flawa Consumer GmbH. The remaining work in the areas of insoles and sustainable footwear components will continue. The headquarters and manufacturing facility remained in Flawil.

In 2020, the company experienced a real epidemic spike: there were very few protective masks in Switzerland. Flawa has produced millions of its own universal masks in 24-hour shifts. At that time the company employed 100 people. There are currently 67 employees.

Source :Blick