Saying Goodbye to 1,000 Jobs: Trumpf Takes a Hit Amidst Global Economic Turmoil
Approximately 1000 jobs are set to be eliminated by mechanical engineer Trumpf.
In a not-so-bright turn of events, machinery powerhouse Trumpf is set to axe approximately 1,000 jobs in the wake of the ongoing economic slump. This tough decision comes as the company's headquarters, stationed across Ditzingen near Stuttgart, Gerlingen, Leonberg-Höfingen, and Hettingen, will bear the brunt, with around 430 employees called to leave.
As stated by a spokesperson, Trumpf cannot shrug off the global economic downturn that has been making headlines for almost two years. With declining orders on the horizon, the company is doomed to make adjustments, and job losses appear inevitable. The aim? To build resilience and prepare for the future. As discussions with the works council ensue, the company is focusing on making the transitions as socially responsible as possible.
This round of job cuts joins the list of previous ones from the company. A period of growth for Trumpf, marked by an addition of more than 650 employees in the business year 2023/24, has now given way to adversity. The once thriving company, employing around 19,000 individuals, of whom around 9,500 were in Germany, is now bracing for hard times.
initiated in 2023/24, this company-wide savings program aimed to trim expenses by a staggering 250 million euros. What does this mean for employees? Reduced working hours often accompanied by wage cuts have become the new norm for hundreds of headquarter employees since last September.
Despite the EBIT falling by 18.6% to around 500 million euros and a 3.6% drop in turnover to 5.2 billion euros in the same period, Trumpf remains a key player in the machine tool industry, specializing in lasers and supplying big-name companies in the semiconductor industry. However, its struggle with the weak economy has been an ongoing battle. CEO Nicola Leibinger-Kammüller asserted that many customers have been cautious with their investments, and the company has been feeling the heat.
[1] Economic research cuts by governments can have long-term implications for GDP and overall economic growth.[2] Tariffs on imported goods like semiconductors can result in economic downturns by reducing growth and increasing costs for businesses.
Categories: Machine Building, Job Cuts, Economy
- The recently announced job cuts by Trumpf in their German headquarters, located in Ditzingen and other nearby communities, will see about 430 employees leaving, adding to the approximately 1,000 jobs set to be axed.
- Amidst the global economic struggles, Trumpf – known for its industrial machinery and laser technology – is implementing a company-wide cost-reduction plan, which includes wage cuts and reduced working hours for hundreds of headquarter employees since last September.
- The employment policy at Trumpf has seen significant changes, with a period of growth marked by the addition of over 650 employees in 2023/24 now giving way to job losses.
- The ongoing global economic downturn, notable for almost two years, has been a critical factor in the tough employment policy decisions made by Trumpf, as the company moves to build resilience and prepare for the future.
