Flawa Consumer GmbH cuts three quarters of its workforce

Two weeks ago, Flawa Consumer GmbH from Flawil in the canton of St.Gallen announced that it would have to let go 56 of its 67 employees. In the end, 49 jobs have been cut. “After carefully examining the current situation, it is clear that, owing to the loss of the wool business, a reorientation is necessary in order for Flawa Consumer GmbH to continue as an economically viable enterprise in the future”, as the company’s management states in a report published by the “St.Galler Tagblatt” newspaper.

The background to these unfortunate mass layoffs is that U.S. Cotton has terminated its relationship with the company and is no longer a customer. The former parent company is transferring the cotton wool business to the USA. In the report, the company explains that this will lead to a sales reduction of more than 50 percent.

In order to avoid a closing down the company totally, members of the management assumed control at the end of June. With the remaining employees, Flawa Consumer GmbH will now concentrate on the remaining business areas involving breathable insoles and shoe components. Moreover, the company will seek “socially acceptable and fair solutions” for the colleagues being let go. ce/hs