Jura has begun laying off workers at its production facility in Leskovac as part of a business optimisation plan, underscoring deepening pressures facing Serbia’s automotive sector. The company announced that due to a significant drop in order volumes, it will implement organisational changes during the first quarter of 2026 that include offering some employees the option of paid leave and severance packages, while a portion will lose their jobs as part of the workforce reduction efforts. These measures reflect deteriorating market conditions in Europe’s automotive supply chain and are being carried out in accordance with Serbian labour law.
The scope of the layoffs has not been specified by Jura publicly, and the company did not respond to questions about precise numbers of affected workers. In its statement, the management emphasised that it is seeking to manage workforce adjustments responsibly and transparently, with a view to maintaining stable production until market conditions improve. The plan includes negotiated contract terminations with incentivised severance pay and temporary paid leave for affected staff through legal processes.
Unions have warned that the situation in Leskovac is only the beginning of a broader wave of job cuts across Serbia’s automotive industry. According to the Independent Union of Metalworkers of Serbia, the low order book for vehicles and components is forcing companies to reduce operations, and they are already seeking to place around 300 workers from Jura on extended paid leave at 60 percent of their salary during 2026. Union representatives say that the broader industry contraction has already resulted in thousands of workers being temporarily sidelined in 2025, with 12,640 employees placed on paid leave for longer than legally permitted, which led to more than 6,000 layoffs last year according to union figures.
Trade union leaders describe the overall situation as serious and worrying, particularly for economically underdeveloped regions of southern Serbia where many automotive suppliers are located. They have called for urgent state intervention by the government and relevant institutions, warning that delays in policy responses could trigger more widespread unemployment and further weaken local economies already coping with industrial decline. The union meeting with government representatives in late January 2026 underscored this sentiment, with officials urged to take concrete measures to mitigate job losses and stabilise industrial activity.
Beyond Jura, analysts note that labour adjustments have been unfolding across multiple automotive supply firms in Serbia, driven largely by reduced demand from European automakers and shifts in global production strategies. While some layoffs are being processed through negotiated or temporary arrangements such as paid leave, unions warn that these could evolve into permanent job losses if market conditions do not recover.
The recent developments at Jura highlight structural challenges within Serbia’s automotive supply chain, where foreign-owned factories have historically been major employers. As the industry adjusts to weaker order books and changing investment patterns, the potential for further layoffs and plant closures has become a focal point of economic concern, prompting calls for coordinated action from industry, labour and government stakeholders.
