The news comes as PKP Cargo itself is shedding both staff and subsidiaries in an effort to stay afloat. On August 17, the company terminated an agreement guaranteeing workers’ social security payments, among other provisions.

The move was one of the new PKP Cargo management board’s decisions aimed at shoring up the firm’s finances. Other measures include group redundancies and a restructuring process.

The management board explained its actions by saying they were “aimed at saving the company and restoring its long-term liquidity and competitiveness while at the same time maintaining as many essential jobs as possible.”

PKP Cargo also said it had “received information about the commencement on August 21 by the management board of PKP Cargotabor of a consultation process with trade unions on collective layoffs.”

PKP Cargotabor is one of Europe’s largest rolling-stock maintenance and modernization companies, operating at 16 depots across the country. It is a subsidiary of Poland’s biggest logistics operator, PKP CARGO Logistics, which is also PKP Cargotabor’s biggest customer.

PKP Cargo said the decision had been taken due to PKP Cargotabor’s “difficult financial situation” as well as the cessation of contracts from PKP Cargo and the parent company’s failure to pay its bills.

PKP Cargo said its subsidiary planned to lay off 30.2% of its workforce, or 752 people, no later than by November 30. PKP Cargotabor had earlier withdrawn a request for restructuring which it had submitted along with a July 26 bankruptcy filing.

Union representatives said they had been informed about planned layoffs but that no details had been provided. They also highlighted that workers at PKP Cargotabor had earlier agreed to a 20% pay cut in order to prevent mass redundancies and now felt “cheated.”