HGK Reduces Number of Employees by 30 Percent

The Croatian Chamber of Economy (HGK) reported on Friday that it is continuing with its reorganization, which involves a reduction in the number of employees by 30 percent.

– Due to the digitalization of internal processes and the decline in revenue caused by the coronavirus pandemic, HGK is entering the next phase of reorganization, which also means a reduction in the number of employees by 30 percent – the statement reads.

They remind that since Burilović took over as president of HGK the focus has been on reorganizing operations and increasing the efficiency of the system, in accordance with the needs of the members for whom HGK exists.

– The digital transformation, which we embarked on more than two years ago, began not only with the Digital Chamber project as the final product but also with the digitalization of internal processes that inherently imply a reduction in the number of employees. Namely, digital transformation was a prerequisite for the rationalization and reorganization of the Chamber that we planned to carry out gradually; however, no one could have predicted the corona crisis – Burilović explains.

He emphasizes that everyone, so to speak, had to adapt overnight to a new reality that is most felt by Croatian entrepreneurs, who are the greatest victims and whose difficulties spill over to the entire society. In the context of HGK, this situation, as he states, implies a significant decline in revenue.

– Because of all this, we decided to start the next phase of HGK’s reorganization earlier, which, unfortunately, also means a reduction in the number of employees by 30 percent. It is never easy to make a decision about layoffs, but it is unavoidable – Burilović stated, adding that HGK, together with the Employment Service, is preparing a plan for employee management.

In fact, HGK employs just over 500 workers.

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