Czech coal miner OKD to cut its workforce by about 350 in second half as mining nears its end

Coal mining company OKD will cut its workforce by about 350 in the second half of the year as mining draws to a close. OKD currently employs 3,300 people in the Karviná region, more than 2,400 of whom are permanent employees. Departing employees will receive severance pay of up to 11 times their salary. OKD spokesperson Barbora Černá Dvořáková told the Czech News Agency (ČTK) today.

OKD is the only hard coal producer in Czechia. In recent years, however, the company has closed most of its mines because they had been unprofitable for a long time. It now mines only at ČSM Mine, at the North and South sites. It plans to end mining after extracting the last longwall faces in the first quarter of next year.

Last year, the company hired 156 new employees to replace those who left through natural attrition. It has already ended recruitment this year and will rely on its current workforce until the last longwall faces have been mined. “We currently have enough employees for all our planned activities,” said OKD HR director Radomír Štix.

Preparations for the longwall faces will end at the end of June, and equipment installation will be completed at the end of August. “After that, mining will be the only activity at both sites of ČSM Mine. OKD will therefore reduce its workforce by approximately 350 in the second half of the year,” Černá said.

Štix said the company would pay employees leaving for organizational reasons severance of up to 11 times their average monthly earnings, depending on their years of service. “We will offer selected employees from the development and equipment installation sections positions in longwall mining, which will continue until the first quarter of 2026, as well as in other areas related to the technical decommissioning of the mine or the company’s other business activities,” Štix said.

Departing employees will be able to use OKD’s New Shift program, which has been running since 2014. “At New Shift, our employee specialists are ready to offer advice and practical help. They provide people with detailed information about the job market, how to prepare for an interview, and how and where to look for work most effectively. They also help with writing a CV or cover letter,” said New Shift manager Markéta Klopcová.

Technical decommissioning of ČSM Mine will begin once the last longwall faces have been mined and will take about three years. “After mining ends, OKD intends to continue operating in coal blend production and green energy. The business plan still needs approval from the company’s sole shareholder, Prisko, and the Ministry of Finance,” the spokesperson said. The state owns OKD through Prisko.