The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacturing Of Machinery And Equipment Manufacture Of Machinery And Equipment N.E.C. 28.96 - Manufacture of plastics and rubber machinery
430 jobs Number of planned job losses
Announcement Date
20 February 2020
Employment effect (start)
20 February 2020
Foreseen end date
31 December 2022
Description
As announced on 20. February 2020, the machine manufacturer Krauss-Maffei will cut approximately 430 jobs in Germany due to internal restructuring, in the coming three years. According to management, the job reduction is a necessary measure to secure future profitability, as the company is currently facing obstacles such as Brexit, the trade dispute between the United States of America and Europe, questionable future of plastics and a lack of investments by the automobile sector.
According to the mandatory announcement at the Shanghai stock exchange, the company's management and the German metalworkers' union IG Metall have already reached an agreement regarding the job reduction. The company will 344 jobs in 2020, 76 in 2021 and further 20 jobs in 2022.
Krauss-Maffei will offer partial retirement and voluntary programmes. Furthermore, employees, who are reaching retirement age and decide to leave the company voluntarily, will receive a special 'Sprinterprämie' pay (sprinter premium) added to their severance payment. The costs for severance payments will accumulate up to €28 million.
Currently, Krauss-Maffei has 3,162 employees in Germany and 5,134 employees worldwide. The company also plans to cut around 80 jobs outside Germany in 2020.
Sources
20 February 2020: Frankfurter Allgemeine Zeitung (online) (zeitung.faz.net)
Eurofound (2020), Krauss-Maffei, Internal restructuring in Germany, factsheet number 100063, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/100063.
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