Eastern Switzerland's Industry Faces Job Cuts and Plant Closures
Eastern Switzerland's industrial sector is experiencing job cuts and plant closures, with over 1,000 positions affected recently. Despite this, the unemployment rate remains stable at 2.1 percent. While unions raise alarms, economic affairs offices and trade union federations call for government support to boost innovation and transformation.
Mubea, a company based in Arbon, Thurgau, plans to cut an additional 100 jobs after laying off 130 employees last spring. The Thurgau Office of Economic Affairs and Labor, however, does not deem the situation alarming. Meanwhile, around one-third of eastern Switzerland’s industrial firms report overcapacity and anticipate workforce reductions by 2026.
SFS has announced the closure of its Flawil plant in St. Gallen, affecting 110 positions, though some will move to Heerbrugg. DGS Druckguss Systeme AG is relocating its aluminum production to the Czech Republic, resulting in 80 job losses in St. Gallen by mid-next year. Unions warn of an alarming number of plant closures in the sector.
The canton of St. Gallen supports businesses through sustained funding programs to ensure attractive framework conditions. Trade union federations in St. Gallen and Thurgau urge cantonal governments to take concrete action to support innovation and transformation.
Despite recent job cuts and plant closures, eastern Switzerland's unemployment rate remains stable. However, unions express concern and call for government intervention to support businesses through innovation and transformation. The situation is being monitored by economic affairs offices, with no alarm raised yet.
