Mass Layoffs Impact Thousands of Bulgarian Workers Amid Investor Withdrawals

Mass layoffs have resurfaced in Bulgaria's labor market, with nearly 10,000 workers affected in the past two years. Once associated with the closure of major industries, this process has gained renewed attention as significant foreign investors withdraw from the country. Between January and October of this year, 65 notifications of mass layoffs involving 4,921 employees were submitted to the Employment Agency. This exceeds last year's total of 4,903 workers from 58 applications.

Layoffs are widespread, affecting various regions, including Sofia. The largest reported downsizing comes from Leoni, a German cable installation manufacturer in Pleven. The company cited labor shortages, inflation, and competitive challenges as reasons for closing its plant, resulting in 1,191 job losses. ContourGlobal Operations Bulgaria, managing the Maritsa-Iztok 3 thermal power plant, laid off 318 employees earlier this year due to a plant shutdown. However, the company recently announced plans to resume operations temporarily this winter, rehiring 150 workers for the season.

Other regions have also seen significant layoffs. In Sliven, ATEC, a producer of car cable installations, reported plans to release 266 workers. Similarly, outsourcing and IT sectors in Sofia are reducing staff. WHG Services announced layoffs of 201 employees, while VMware, a cloud technology company, cut 148 positions. Additional layoffs were reported by firms like Concentrix and Pontica Solutions, which together planned dismissals for over 250 workers.

The trend extends to other industries and regions. Turkish clothing manufacturer Dynatex in Burgas announced 138 layoffs, while Yazaki Bulgaria, a Japanese car electrical installation plant in Yambol, reported 137 job cuts. In Plovdiv,...