Homag plans to cut 600 jobs
The Swabian machine manufacturer Homag plans to cut 600 jobs due to declining demand, 350 of them in Germany. The job cuts are expected to result in savings of around 25 million euros in the coming year and around 50 million euros annually from 2025, the manufacturer of woodworking machines announced on Tuesday. According to the company, it had around 7500 employees in the middle of this year.
After high investments by customers in 2021 and 2022, a downturn was expected. "However, with almost a third less incoming orders worldwide, this is much more pronounced than expected," said CEO Daniel Schmitt according to the press release. The company has therefore drawn up a package of measures and discussed them with employee representatives.
In Germany, job cuts are to be implemented via voluntary programs and early retirement models. "Layoffs for operational reasons are not currently planned, but cannot be ruled out," the company stated. Homag is also planning to reduce working time accounts and short-time working and has imposed an extensive hiring freeze.
Due to the lower order volume, Homag expects a drop in sales of up to 15 percent in the coming year. The problems at the mechanical engineering company from Schopfloch in the Black Forest are also having an impact on the parent company Dürr. The latter expects a profit after tax of between 110 million and 160 million euros for this year. Previously, the expectation was between 160 million and 210 million euros.
Despite being a leader in mechanical engineering, particularly in the wood industry, the company is faced with declining demand and consequently plans to cut 600 jobs, primarily in Germany. The company's extensive cost-saving measures include voluntary layoffs, early retirement models, reductions in working time accounts, and short-time working, demonstrating its adaptability in the face of industry challenges.
Source: www.dpa.com
