Job losses announced by German automotive supplier: 500 positions eliminated
A German machinery manufacturer and automotive supplier, Dürr, is facing a crisis and has announced plans to cut around 500 jobs in administrative functions by the end of 2026 as part of a broader group restructuring and realignment [1][2]. This move is aimed at enhancing efficiency and robustness in a challenging market environment.
The intended long-term savings from this restructuring are approximately €50 million annually, with the full savings expected to be realized starting in 2027 [1][2]. However, the job cuts will lead to extraordinary expenses of €40 million to €50 million in the second half of 2025. These costs will be offset by a significant book profit from the sale of Dürr’s environmental technology business, which is forecasted at €160 million to €190 million after tax and is expected to materialize in the fourth quarter of 2025 [1][2].
The job cuts and restructuring at Dürr are part of a broader economic struggle affecting various industries, particularly the automotive sector, which is currently facing significant difficulties, with frequent job cuts and insolvencies [3]. The company’s Production Automation Systems business unit has been impacted by investment uncertainty and subdued business conditions [1].
The financial changes in the industry are primarily due to the USA’s trade policy [4]. Many companies in the industry are taking cost-cutting measures to survive. The job cuts at Dürr will not only affect the site in Bietigheim-Bissingen, Baden-Württemberg, but also employees in other Dürr plants [2].
In June, Dürr sold the majority of its environmental technology division, further demonstrating the company's efforts to streamline its operations [5]. The company's crisis is not limited to a single division, it affects the entire organization, and the restructuring aims to make Dürr more efficient and focused, providing greater flexibility to achieve profitable growth despite the current market challenges [1].
- Dürr's decision to sell a significant portion of its environmental technology division in June highlights their commitment to enhancing the efficiency of their operations not only in administrative roles but also in environmental initiatives, signifying a broader environmental focus in their restructuring plans.
- The proceeds from the sale of Dürr’s environmental technology business could potentially be utilized towards innovative environmental solutions within the sports sector, further showcasing the company's ongoing commitment to sustainability and its desire to align itself with other progressive industries.
