BSH Hausgeräte, one of the largest manufacturers of home appliances in Europe, is set to initiate downsizing measures. CEO Dr. Matthias Metz disclosed precise figures to the Süddeutsche Zeitung, indicating that 3,500 positions will be phased out by 2027.
The initial wave of 1,000 job cuts is slated for this year, with 450 jobs expected to be affected in Germany alone. Plans for the subsequent three-year period remain undecided. Currently, approximately 17,000 out of a total workforce of around 60,000 are employed in Germany. The bulk of the staff reductions are anticipated to occur in administrative roles and internal service sectors.
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After experiencing record sales during the COVID-19 pandemic, the home appliance industry witnessed a downturn in demand in 2023, partly due to retailers still holding substantial inventories resulting from previous supply chain disruptions. These disruptions had already led to relatively modest sales growth for BSH in 2022 (+2.5%). The collapse of the Russian and Ukrainian markets, previously pivotal for the conglomerate, alongside a decline in the Chinese market, further compounded challenges. Conversely, investments were made, particularly in emerging markets like India.
Source: www.moebelkultur.de