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Industry News

Published on October 30th, 2019 | by The GC Team

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Job losses at Miele as business restructures

German appliance manufacturer Miele is to “bundle” its operating business into eight individual units with the loss of around 1,070 jobs globally.

240 jobs could be shed in Germany by the end of 2021, mainly at the company’s Central Headquarters in Gütersloh, and around 830 jobs outside Germany may be affected.

The family-run business said the need for “urgent action” was due to far-reaching changes in consumer habits as a result of digitalisation, and the increasingly price-aggressive behaviour of Asian corporations.

Savings of around 190 million euros per year are expected to create the financial latitude for an increase in sales power and investments, significantly in digital marketing and new areas of business.

“Enforced redundancies are to be avoided wherever possible. In return, it is planned to create around 470 new jobs, for instance in the area of digital competence,” a statement released by the business said.

“The Executive Board is fully aware of the huge impact of these cuts on the employees concerned. Consequently, every effort will be made to arrive at responsible and socially acceptable solutions which reflect the values of the company.

“The next phase will include detailed negotiations with Works Councils, which will commence immediately.”

The company also referred to preparations for the future relationship between its Gütersloh washing machine plant and new production plant in the Polish town of Ksawerów, which will result in the loss of around 650 jobs at Gütersloh through to the end of 2025.

Executive Directors and Co-Proprietors of the business, Dr. Markus Miele and Dr. Reinhard Zinkann, said: “Implementing the proposed changes will be a tour de force which will only be possible with the support and the backing of the workforce.

“But such effort will be worthwhile as we are all making an essential contribution to sustainably securing Miele’s standing as the sound, strong and independent family-owned company it is today.”

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