GERMANY (From news reports) -- German machine manufacturer Voith said it plans to cut up to 2,500 jobs, representing about 10% of its workforce, as part of a strategic review of its organizational structure and staffing levels.
"A reduction of up to 2,500 jobs is expected as part of the adjustments," the company said.
Germany will be a key focus of the review, Voith said, noting that while the country offers technological expertise and innovative capacity, it also faces structural challenges. In particular, energy and labour costs, complex regulatory requirements and a high level of bureaucracy were cited.
The company stressed that no concrete decisions have yet been made regarding specific locations or business areas affected by the planned cuts.
The export-oriented machinery and plant engineering sector is one of the most important industrial branches in the south-west of Germany, where Voith has its headquarters, in the town of Heidenheim an der Brenz in the state of Baden-Württemberg.
The company has other plants in its home state and is represented with locations in the states of Bavaria, North Rhine-Westphalia, Lower Saxony, Schleswig-Holstein, Saxony-Anhalt and Saxony.
The medium-sized company employs around 22,000 people worldwide in more than 60 countries.
Founded in 1867, Voith supplies machines and technical systems to a range of industrial sectors. Its portfolio includes turbines, generators and digital control technology for hydropower plants, as well as systems for processing recycled paper.
Additionally, Voith is active in the field of drive and industrial technology, including gearboxes and couplings for trains, ships, and industrial applications.
The group - with its three divisions hydro, paper and turbo - recently reported losses due to the economic downturn.
In the 2023-24 financial year, the group result fell to a loss of €247 million ($287 million). A year earlier, there was still a profit of €73 million on the books. Revenue fell to €5.2 billion.
The figures for the financial year 2024-25, which ended in September, are not yet available. A year ago, the technology group had still expected an improvement in revenue and profit.
Group chief executive Dirk Hoke pointed to increasing competitive pressure. "Voith faces major challenges in the global market, which is why we have conducted a comprehensive strategic analysis of our business," he stated.
To be able to survive and grow in the long term, Voith must have sufficient resources for investments and make the organization as efficient as possible, Hoke said.
"We must now jointly strengthen the organization, accelerate innovation and seize growth opportunities, not least to secure the location in Germany," Hoke stressed.
The adjustments involve simplifying processes, shortening decision-making paths and specifically investing in future fields that ensure long-term competitiveness, he said. Hoke counts the profitable service and digital business, global growth regions and new technologies among these, he added.
