Suva sock factory to lay off several dozen employees
Estonian hosiery and sock factory owned by Sockmann Group, which operates under the Suva brand, plans to lay off 25–30 of its 52 employees, citing sharply rising production costs and an unfavorable economic environment.
According to a notice of collective redundancies submitted to the Unemployment Insurance Fund, Suva intends to lay off between 25 and 30 workers.
Factory owner Viktor Saarestik told ERR that some employees have already been laid off, and further decisions will be made gradually, which is why it is not yet possible to say exactly how many people will ultimately lose their jobs. Saarestik cited the current economic situation as the reason for the layoffs.
"Production here has become so expensive that it's no longer sustainable," he said, adding that this is where the problem starts, but there is also a global crisis affecting everything.
According to Saarestik, the company's difficulties began with the COVID-19 pandemic, followed by the energy crisis and the rapid rise in prices that came with it. He acknowledged that some customers have shifted to Temu or other discount retailers, but said the other part of the problem is that people in general are simply buying less than they used to.
In 2024, Sockmann Group reported revenue of slightly over €2 million and earned nearly €43,000 in profit, although the company has yet to submit its most recent annual report. Saarestik noted that there were no major setbacks last year, but compared with 2024, performance was slightly worse. As a result, the company is now aiming to do less, but better.
"It's not that we're shutting down completely," Saarestik emphasized. "We're trying to survive."
He also confirmed that the planned cuts will not affect Suva's retail stores, which will continue operating as usual.
The history of the Suva sock factory dates back to 1919, when the company was originally founded under the name AS Rauaniit. The Suva brand was introduced in 1991.
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Editor: Karin Koppel, Argo Ideon
