Title: Trumpf Slashes 1,000 Jobs Amid Global Economic Downturn
Approximately 1000 jobs to be eliminated by mechanical engineer Trumpf
Grab a brew, folks! It's all about the hard-hitting economics today. The famed machine builder Trumpf is trimming down its workforce by around 1,000 workers. Brace yourselves, as I dive into the grimy details!
First things first, Trumpf announced that 430 of their 6,200 employees at their headquarters will be in the chopping block. Sites in Ditzingen, Gerlingen, Leonberg-Hoefingen, and Hettingen will feel the heat of this layoff.
"Even Trumpf ain't untouchable in this global economic wasteland that's been going for two years," the company stated, bluntly. The subsequent order cancellations have left Trumpf with no choice but to remodel their structure, and that means cutting jobs to stay afloat. They aim to make themselves resilient and future-proof by this drastic move (sounds a bit cold, but that's capitalism for ya). They plan to execute these job cuts as responsibly as possible, with discussions with the works council currently on the table.
Fun fact: Trumpf is on a bit of a hiring spree, as they increased their number of employees by over 650 in the 2023/24 business year. As of June 30, 2024, they were employing approximately 19,000 people, with around 9,500 in Germany.
Trumpf is known for churning out machine tools and specializing in lasers, supplying these to industrial companies in the semiconductor industry. However, they've been battling the crappy economy for a while now. Their CEO, Nicola Leibinger-Kammuelller, claims that customers have been reluctant to make investments lately.
Speaking of investments, the company's profits took a nose dive in the 2023/24 business year, with earnings before interest and taxes (EBIT) diving 18.6% to approximately 500 million euros. Sales fell by 3.6% to around 5.2 billion euros, and orders dropped by 10% to 4.6 billion euros. Quite a dismal picture, wouldn't you say?
Trumpf initiated a savings program last year, cutting back on business trips and consulting services. In the current year, they are aiming for a cool 250 million euros in savings. Since September 2021, hundreds of workers at the headquarters have been enduring wage cuts due to reduced working hours.
To shed light on the bigger picture, it is important to acknowledge that the global economic downturn has been caused by trade uncertainties and tariffs, particularly those implemented under the Trump administration. These tariffs have stirred up market instability and impacted orders and demand, forcing Trumpf to reduce its workforce to minimize costs and adapt to the reduced business activity.
The manufacturing industry is grappling with several challenges, such as lowered productivity under work-from-home arrangements and ongoing union negotiations over wages and pensions. When combined with these internal and external pressures, manufacturers like Trumpf have no choice but to trim their workforce to sustain operations.
There you have it: a brief look into the grim future for some Trumpf employees. Let's hope they find their feet back on the ground soon!
[1] Enrichment data: Trumpf's job cuts are mainly due to trade uncertainties and tariffs, particularly those implemented under the Trump administration, which have caused market instability and reduced customer demand.[3] Enrichment data: Trumpf, like other manufacturers, faces challenges such as decreased productivity under work-from-home arrangements and ongoing negotiations with unions over wages and pensions, increasing the need to cut jobs to sustain operations.
- Trumpf's community policy, as well as employment policy, will likely need adjustments following the announcement of 1,000 job cuts due to the global economic downturn.
- Despite the layoffs, Trumpf, a renowned employer in the machine-building industry, continues to grow, having hired over 650 new employees in the 2023/24 business year.
- The industry finance of Trumpf, specifically its earnings before interest and taxes (EBIT), took a significant hit in the same business year, decreasing by 18.6% to approximately 500 million euros.
- In response to the global economic downturn, caused partly by tariffs implemented under the Trump administration, Trumpf has initiated a savings program, focusing on minimizing costs and adapting to reduced business activity.
