The household appliance manufacturer Miele is cutting up to 2,000 jobs worldwide. 700 jobs in washing machine assembly at the Gütersloh headquarters are to be relocated to Poland.
Rumors have been circulating for months about job cuts and production relocations at the household appliance manufacturer Miele in Gütersloh. Today, management informed employees and the public about the specific plans.
They stipulate that the traditional manufacturer will cut up to 2,000 jobs worldwide. Miele announced that 700 jobs in German washing machine assembly at the Gütersloh headquarters will be relocated to Poland by 2027 – “subject to negotiations with employee representatives”.
In the future, almost all household washing machines will be assembled at the Polish factory in Ksawerow. Locations should not be closed. The assembly of tumble dryers and small commercial machines will remain in Gütersloh.
Criticism from IG Metall
The IG Metall union expressed criticism of the plans. The company is moving away from its brand promise and is now apparently focusing on cheaper instead of better, said North Rhine-Westphalia district manager Knut Giesler, according to a statement.
The market situation for Miele is currently tense. After the record years from 2020 to 2022, there is no reason to resort to such measures when the first headwind arises, according to the union.
Record results in the pandemic
During the corona pandemic, the company benefited from strong demand for household appliances. In 2022, sales rose by 12.2 percent to 5.43 billion euros, more than ever in the company’s history. Figures for 2023 are not yet available.
The family business turns 125 years old this year. 23,300 employees work for Miele worldwide, 11,900 of them in Germany.
Details are still being negotiated
According to the company, it is not yet clear which areas will be affected by personnel cuts and to what extent. The details would be worked out and negotiated with the social partners in the coming months.
Miele is suffering from a collapse in demand and increased costs. According to the company, sales fell by around 9 percent in 2023 as a whole. The aim is to save 500 million euros by 2026.
“No temporary economic dip”
“What we are currently experiencing is not a temporary dip in the economy, but rather a lasting change in the framework conditions relevant to us that we have to adapt to,” said the management.
Thousands of jobs are currently being cut across all sectors in German industry. Bayer boss Bill Anderson announced significant staff cuts in Germany in mid-January. At the end of last year, Volkswagen already prepared its workforce for staff cuts. Bosch is planning 560 fewer jobs in the Power Tools division. The software company SAP is cutting up to 8,000 jobs.
In the morning, the Federal Statistical Office surprisingly reported an increase of 8.9 percent in incoming orders from industry in December. However, large orders in particular caused growth. In the fourth quarter of 2023, total incoming orders were only 0.1 percent higher than in the previous three months, despite the strong December.