A wave of downsizing in the industry: Factory closure and layoff decisions are increasing

Increasing production costs in Turkey, difficulties in accessing finance and the transformation in global markets brought about downsizing decisions in industrial companies. Notifications made to the Public Disclosure Platform (KAP) and statements from companies in October and November revealed that factory closures, layoffs and capacity reductions increased in different sectors.

While decisions to reduce production and employment were brought to the agenda in large industrial companies such as Arçelik, Bosch and Alarko Carrier, the increase in the number of factories put up for sale throughout Turkey also raised question marks regarding the financing and cash crunch in the real sector.

ALARKO CARRIER WILL CLOSE ITS GEBZE FACTORY

Alarko Carrier, operating in the air conditioning sector, decided to terminate the activities of its production facility in Gebze in order to reduce costs.

In its statement to KAP on November 6, the company announced that the factory will be completely closed as of February 28, 2027 and the employment contracts of 183 employees will be terminated.

The decision was one of the latest examples showing the impact of high costs on the production plans of industrial companies.

BOSCH PARTIES WITH 300 WORKERS IN BURSA

In the automotive sub-industry, the acceleration of the transition to electric vehicles and the decrease in demand for traditional engine parts affected the production in Bursa.

Bosch's Bursa factory parted ways with approximately 300 employees, mainly within the scope of EYT.

It is stated that in line with the company's global strategies, there may be a total employment contraction of 1,400 people in Turkey by 2030.

CAPACITY REDUCTION CLAIM IN ARÇELİK

Claims of downsizing on the production side have also come to the fore in the white goods industry.

While it is stated that the layoffs, which have been ongoing for a while in Arçelik's Bolu factory, have accelerated in recent weeks, it is claimed that the production capacity will be reduced by 30 percent and some production lines will be shifted to the facilities in Manisa.

There is no definitive decision made public by the company regarding the allegations in question.

SALARY CRISIS AT DARDANEL

In addition to the contraction in production, wage payments were also a matter of discussion in some companies.

Unions and workers at Dardanel, based in Çanakkale, started a protest process, stating that salaries have not been paid for the last two months.

While the company management announced that the wages were paid and bonuses were distributed, the workers claimed that their accounts were not paid.

DOMESTIC LEGAL CONFLICT BEHIND THE PROCESS IN SARAR

Behind the news that Sarar, which operates in the clothing industry, has filed for bankruptcy in Eskişehir, there is a legal process different from the financial structure of the company.

It is stated that within the scope of the inheritance and management dispute that occurred after the death of Celaleddin Sarar, one of the founding partners, the heirs who objected to the share transfer initiated "proceeding through bankruptcy" against the company management.

Therefore, the process in question does not directly mean that the company is financially bankrupt.

THE NUMBER OF FACTORIES FOR SALE EXCEEDED 2 THOUSAND 370

In addition to downsizing decisions on a company basis, factory announcements in the real estate market also attract attention.

According to the data of real estate data platforms, the number of factories put up for sale across Türkiye has exceeded 2 thousand 370.

It is stated that there has been an approximately 60 percent increase in factory advertisements for sale in the last year.

High inflation, increasing energy and labor costs, and difficulties in accessing credit increase the working capital needs of companies and lead some companies to put their production facilities up for sale.

CASH CONSTRUCTION IN THE REAL SECTOR IS DEEPENING

While factory closure, capacity reduction and layoff decisions are based on different reasons, the common headlines are high financing costs, weakening demand and increasing production costs.

These developments in industrial companies show that the pressure on cash flow and investment capacity in the real sector continues.