KraussMaffei to lay off 510 workers

KraussMaffei has announced its intention to slash 510 jobs across its European operations in the next 3 years, with 430 job cuts in Germany, while another 80 to be implemented at its operations outside Europe. 

 

The Group has cited unfavorable economic conditions - Brexit and the US-China trade war, among others - that contribute to declining sales and higher production costs. The announcement came in the wake of a series of job cuts by companies in Germany as the country is hit by economic slump affecting industrial production. As announced by the KraussMaffei officials, the move aims to reduce production costs and improve the company's financial position.   

 

According to news reports, the KraussMaffei job cuts would affect around 10% of its workforce of its 5,000+ workers. KraussMaffei intends to implement measures that include voluntary retirement and freeze hiring, among others. The Group has signed an agreement with its workers, the KM Trade Union Organization, where severance pay, compensation and transitional placement details were covered.   

 

KraussMaffei has not announced any change in its current investment program that include a new bigger headquarters in Parsdorf, new facilities in Laatzen and Einbeck, and expansion of its China plant.