Miele, the German appliance manufacturer, revealed plans to cut between 1,300 and 1,400 positions across its German operations, with Gütersloh being the most impacted location. But Miele's management, stated that the company aimed to manage the job cuts "as socially responsibly as possible", by implementing a planned workforce reduction without resorting to redundancies. The company announced that sufficient employees opted for voluntary departures, aided by severance packages, to meet its restructuring goals.
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Birgit Bäumker, Chair of Miele's Works Council, expressed relief, saying, 'Free from the worry of forced layoffs, we can now focus on securing the future of all sites.' The reduction plan was part of Miele's response to declining demand following a pandemic-driven sales surge, during which consumers heavily invested in household appliances. In 2023, Miele's revenue fell to €5 billion from €5.4 billion in 2022.
The job cuts primarily affect Gütersloh, Miele's headquarters, but other German sites are also impacted. The Works Council acknowledged the challenge of navigating the changes, but is committed to collaborating with management to stabilise operations.
Source: www.rnd.de