Kraków versus mass layoffs. What awaits the business services industry?


International corporations such as Shell, Heineken, HSBC and UBS, which have been expanding their branches in Krakow for years, are starting to reduce employment. As we read in a study prepared by Bloomberg, Shell Polska, present in the city for almost two decades, is reducing the number of new jobs and focusing on more specialized positions. The company's spokeswoman, Katarzyna Cyran, emphasized that new roles require increasingly higher qualifications.
The rest of the article below the video:
Similar changes are observed in other companies. HSBC has cut approximately 300 positions while creating more advanced jobs. Grzegorz Góralczyk, director of the bank's customer services department, noted that artificial intelligence took over some simple processes, which were moved to cheaper locations, mainly in Asia.
According to data from the Krakow labor office, by the end of October, 32 companies reported their intention to lay off a total of 4,195 people, an increase of 70%. compared to last year. The exemptions mainly affect industries related to data processing, hosting, accounting and tax consulting.
Andrzej Kubisiak, deputy director of the Polish Economic Institute, quoted by Bloombarg, noted that although the impact of artificial intelligence on the labor market is still limited, the service sector is transforming towards more advanced jobs.
“Poland is no longer an economy based on cheap labor. The announced mass layoffs are a challenge that requires adaptation and change,” he emphasized.
Krakow in a new reality
Krakow, which until recently was a symbol of Polish economic success, is faced with the need to adapt to new realities. In 2022, the city overtook Warsaw in terms of average wages, and salaries were 26% higher than in the previous year. higher than the national average. However, wage increases and concerns about employment stability affect the local market.
This can be seen in the mood among the residents. Bloomberg's material quotes several reports. Including, among others: A 35-year-old employee of the customer service department in one of the international corporations, who recalls that not long ago the labor market in Krakow resembled a “fairy tale”. “We didn't ask if we would find a job, but when,” he says, noting that today the situation is different and many people are afraid to change employers.
New challenges and hopes
City authorities and local educational institutions are taking action to meet new challenges. The Jagiellonian University has launched a field of study in artificial intelligence, which is very popular. This year, an AI center was also opened to support cooperation between science and business.
Despite this, recently there have been more and more statements comparing the capital of Małopolska to the American Detroit. A city that was heavily dependent on the automotive industry, the collapse of which led to its collapse.
Read also: Revolution in Krakow: New regulations for drivers and entry fees
However, the vice-president of Krakow, Stanisław Mazur, rejects such comparisons.
“Kraków is prepared for economic changes and has the resources to build an innovative economy based on high technologies“- he assured.
“Kraków will not become Detroit. Kraków will remain Krakow,” he emphasizes.




