Slimming Down the Workforce: Trumpf Slashes Around 1000 Jobs Amidst Economic Slump
Truncating approximately 1000 positions within the mechanical engineering sector across Trumpf Inc.
Going big in the economy isn't an overnight task, it takes time and effort. Unfortunately, Trumpf – a leading machinery titan – finds itself in a rough patch due to the ongoing economic recession. Consequently, it's compelled to let go of approximately 1000 employees. This isn't the first round of cutbacks.
The downturn has left its mark on Trumpf, forcing it to tweak its workforce strategy. Of the 6200 employees at its head office, around 430, including Trumpf sites in Ditzingen, Gerlingen, Leonberg-Hoefingen, Hettingen, and Stuttgart, will be axed according to a spokesperson.
"Even the mighty Trumpf cannot escape the global economic downturn that's been persisting for nearly two years," the statement read. A surge in order cancellations has prompted this restructuring, making job cuts inevitable. The company intends to emerge stronger and more resilient from this step, focusing on making itself future-proof. No stone will be left unturned to execute this trend-setting downsize as responsibly as possible, as negotiations with the works council are currently underway.
The Economic Unease Limited to Trumpf? Absolutely Not!
In the 2023/24 fiscal year, Trumpf's workforce swelled by more than 650. By June 30, 2024, the family-run company employed roughly 19,000 individuals, around 9500 of them in Germany.
Trumpf is renowned for manufacturing machine tools and specializing in lasers. Its lasers find their way into numerous industrial enterprises in the semiconductor industry. Lately, the company has been feeling the bite of the weak economy. Reports suggest that customers have been hesitant to invest, as per CEO Nicola Leibinger-Kammueller.
The Bottom Line
In the 2023/24 fiscal year, Trumpf's earnings before interest and taxes (EBIT) dipped by 18.6 percent to around 500 million euros. Simultaneously, revenue decreased by 3.6 percent to approximately 5.2 billion euros, and orders fell by 10 percent to 4.6 billion euros. This left the balance sheet worse off than anticipated. The Trumpf financial year runs from July to the end of June of the following year.
By then, Trumpf had already initiated a cost-cutting program which encompassed business trips and consultancy services. In the current fiscal year, the management, led by Leibinger-Kammueller, aimed for a savings of 250 million euros. Since last September, hundreds of employees at the head office have accepted wage cuts due to reduced working hours.
Source: ntv.de, as/dpa
- Machinery Industry
- Job Losses
- Economic Downturn
- Trumpf, facing the prolonged economic downturn, is modifying its employment policy to reduce its workforce by around 1000 positions, including employees at its sites in Ditzingen, Gerlinging, Leonberg-Hoefingen, Hettingen, and Stuttgart, according to a spokesperson.
- Despite Trumpf's significant growth over the past fiscal year, employment at the machinery giant will now be around 9500 in Germany, a decline from the previous year's workforce.
- Trumpf, known for its production of machine tools and laser technology, has been affected by the economic slump, as evidenced by the decline in orders, revenue, and earnings before interest and taxes (EBIT) in the 2023/24 fiscal year.
- In response to the economic downturn, Trumpf has focused on revising its community and employment policies, implementing cost-cutting measures, and negotiating wage cuts with the works council to mitigate the impact of the restructuring.
