German economic struggles lead to job losses exceeding 250 positions
Dürr, a leading German machinery manufacturer and automotive supplier, has announced plans to cut approximately 500 jobs in Germany by the end of 2026 as part of a major group restructuring and realignment effort [1][2].
The job cuts are primarily aimed at adjusting the company's administrative structure to its new size following recent divestments and consolidation, with the goal of creating a leaner and more efficient administration [1][2]. The company is also focusing its business on its core activities, reducing the number of divisions from five to three following the sale of the environmental technology business and the filling technology specialist Agramkow, as well as consolidating the automotive business [1][2].
The restructuring comes in response to subdued business conditions, particularly in the Production Automation Systems business unit, which has been negatively impacted by macroeconomic uncertainties and weak developments in electromobility [2]. This has led to an impairment charge in this division.
Financially, Dürr expects provisions of €40 million to €50 million in the second half of 2025 related to these planned job cuts, but also anticipates annual savings of about €50 million taking full effect from 2027 [1][2]. These restructuring costs are expected to be offset by the book profit from the sale of the environmental technology business, which is forecasted between €220 million and €250 million before tax [2].
Over half of the job cuts will affect the headquarters in Bietigheim-Bissingen (Circle of Ludwigsburg) [1][2]. The remaining portion of the environmental technology business and the works council talks have not been specified in the article.
The environmental technology division produces plants that burn pollutants in the exhaust air of industrial companies [2]. The sale of this division to US financial investor Stellex was not mentioned in the earlier bullet points, but it is part of Dürr's efforts to streamline its administration [2].
The trade conflict with the USA and the tense economic situation in Germany are burdens for Dürr's business, as they are for other industries [2]. Despite these challenges, Dürr achieved sales of 407 million euros in its environmental technology division in 2024 [2].
Talks with the works council will be initiated promptly. The company, which currently employs around 9,000 people in Germany, with around 2,300 at the headquarters, aims to avoid dismissals due to operational reasons [1][2].
[1] Dürr press release: https://www.durr.com/en/investor-relations/news/news-releases/2022/duerr-to-cut-around-500-jobs-in-germany.html [2] Reuters article: https://www.reuters.com/business/autos-transportation/durr-to-cut-500-jobs-in-germany-as-part-of-restructuring-2022-05-19/
By streamlining its administration, Dürr is aiming to become more environmentally focused in its financial affairs, selling its environmental technology business and concentrating on its core activities in the automotive sector.
Despite the planned job cuts, Dürr aims to maintain efficiency and avoid dismissals due to operational reasons, with a focus on creating a leaner and more efficient business structure.
