EMCC European Monitoring Centre on Change

Progress-Werk Oberkirch

Company/Organisation:
Progress-Werk Oberkirch

Geographic Location

Country: Germany
Region: Ortenaukreis; Freiburg; Baden-Württemberg
Location of affected unit(s): Oberkirch

Company

Sector: Manufacturing
Manufacture of transport equipment
29.3 - Manufacture of parts and accessories for motor vehicles
Number Employed: 1250

Employment Effects

Announcement Date: 29-12-2020
Planned Job Reductions min: 120
Planned Job Reductions max: 150
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-01-2021
Foreseen End Date: 31-12-2021
Other Job Reduction Measures: 120

Additional Information

As announced on 29 December 2020, the German automotive supplier Progress-Werk Oberkirch (PWO) will be cutting approximately 120 to 150 jobs at its plant in Oberkirch by the end of 2021 due to internal restructuring. The reduction is part of the strategy to stay competitive, as personnel costs in Germany have become significantly higher compared to its other locations. PWO is considering relocating its production from Oberkirch to its plant in the Czech Republic. PWO intends to achieve its job reduction goal mainly via a voluntary programme until the end of 2021. In order to remain competitive, the plant will also focus on digitalisation, big data analysis and machine learning in the future. 

In October 2020, PWO already announced that it will be cutting 200 jobs until the end of 2020 via a voluntary programme (Progress-Werk, 2020).

Currently, PWO has 1,250 employees in Oberkirch.