Slashing Jobs: Trumpf's 250 Million Euro Cost-Cutting Spree
Approximately 1000 jobs to be eliminated by mechanical engineer Trumpf
Settling in for economic recovery? Think again, pal. Due to the prolonged economic slump, machine manufacturer Trumpf is ditching a chunk of their workforce. Bid farewell to around 1000 of 'em, mate. That's right, a whopping 16% of their German staff are on the chopping block, and it's all happening in the upcoming months.
A Trumpf spokesperson leaked the grim details, stating, "Even Trumpf can't evade the global economic downturn that's been on for nearly two years." With order cancellations piling up, they're restructuring their business andshedding jobs to keep their heads above water. However, they're trying to be considerate during these tough times, engaging in negotiations with their works council to ease the blow.
Last fiscal year, Trumpf upped its employee count by over 650, growing to a grand total of around 19,000 employees, with about 9500 within Germany. They produce machine tools and are a go-to for lasers, supplying these to various industries, including the semiconductor sector. The company has been wrestling with a sluggish economy for quite some time now, as clients have been skimping on investments.
Profit Plummets
Last fiscal year wasn't exactly fruitful for Trumpf as their EBIT dropped by a whopping 18.6%, settling around half a billion Euros. Their revenue plummeted by 3.6% to approximately 5.2 billion Euros, and orders tanked 10% to 4.6 billion Euros. The results were far from rosy, friend. Trumpf's fiscal year runs from July to the following year's end of June.
The company already slashed costs last year, implementing a cost-saving program, which included axing business travel and consulting services. Their bigwigs led by Nicola Leibinger-Kammüller aimed to save 250 million Euros this year. Since last September, hundreds of employees at the headquarters sadly had to take wage cuts due to reduced working hours.
While Trumpf isn't the only company facing these challenges, it's critical for them to take swift action to survive the economic downturn and position themselves for long-term success.
Source: ntv.de, as/dpa
Machine Building
Job Cuts
Economy
Enrichment Data:
Job cuts, like the ones Trumpf is facing, can be a result of economic downturn, restructuring, or advancements in technology that lead to automation. The impact of job cuts can include reduced workforce, economic impacts, and negative effects on employee morale and engagement. Cost-cutting measures might involve streamlining processes, investing in technology, or reducing non-essential expenses. Trumpf's job cuts could be a strategic move to combat the economic slowdown, improve efficiency, and secure the company's future in the long run.
- Trumpf's community policy, as well as their employment policy, is undergoing significant changes due to the ongoing economic downturn, with a projected 1000 job cuts in their German office within the upcoming months.
- In light of the economic slump, machine manufacturer Trumpf, including its builders, is implementing cost-cutting measures such as the elimination of business travel and consulting services, aiming to save 250 million Euros this year.
- The financial sector has been impacted by the prolonged economic recession, with industries like machine building, including Trumpf, and their respective employment policies, facing troubling times.
- The global industry, including Trumpf and other companies, is navigating job losses and economic instability during the downturn, and swifter actions are necessary for survival and long-term success.
