EMCC European Monitoring Centre on Change

SMS Group

Company/Organisation:
SMS Group

Geographic Location

Country: Germany
Region: Nordrhein-Westfalen
Location of affected unit(s): Gladbach, Aachen, Witten, Hildenbach, Düsseldorf, Hilden

Company

Sector: Manufacturing
Manufacture of machinery and equipment n.e.c.
28.11 - Manufacture of engines and turbines, except aircraft, vehicle and cycle engines
Number Employed: 5250

Employment Effects

Announcement Date: 11-05-2016
Planned Job Reductions min: 1200
Planned Job Reductions max: 1200
Type of Restructuring: Internal restructuring
Employment Effect Start: 11-05-2016
Foreseen End Date: 31-12-2017
Direct Dismissals: 200
Other Job Reduction Measures: 1000

Additional Information

The machine and plant builder SMS Group announced to cut 1,200 jobs in Germany by the end of 2017. According to the company, job cuts are due to the continuing crisis in the steel and non-ferrous metals industry. Redundancies should be carried out as socially acceptable as possible, however, around 200 employees will be dismissed. A total of 50 direct dismissals will affect employees in Gladbach, Aachen and Witten. In Hildenbach 90 employees will be dismissed and in Düsseldorf and Hilden a total of 60 staff will be affected. Other job reduction measures will be partial retirement, pension at the age of 63, hiring freeze or relocations.

Nevertheless, the company emphasises that they will continue with the expansion of the growth areas digitalisation, modernisation, electrics and automation, service as well as energy and environmental technology. SMS Group, headquartered in Düsseldorf, currently employs around 14,000 staff worldwide and a total of 5,250 in Germany.