Jungheinrich Announces Restructuring, Impacting 1,000 Jobs ‍Globally

Lüneburg/Norderstedt – ⁤Jungheinrich, a leading manufacturer of forklifts and‍ intralogistics⁤ solutions, is undergoing a important restructuring that will ⁤result⁢ in the elimination ‍of approximately 1,000 jobs worldwide, with roughly half of ‍those cuts occurring in Germany. The ‍move includes ⁤the planned closure of the company’s⁢ Lüneburg plant, despite its profitability, signaling a shift in strategy ‍amid⁣ increasing market pressures.

Production Halt in Lüneburg and Norderstedt

The production facility in Lüneburg is slated to ⁢cease operations by the end‍ of March 2027,impacting 160 employees. While production will end, 125 positions in construction and ‍administration will ⁢be retained at the⁣ Lüneburg location. Additionally, the Norderstedt plant will also experience job losses, though the exact number hasn’t been specified beyond⁣ being in the triple digits. ‍Further reductions are planned for the company’s headquarters in Hamburg ⁣and its sales institution. Approximately 500 of the⁢ total⁢ job cuts ⁣will occur outside of Germany, across Jungheinrich’s 41 international organizations.

Social Plan and Employee ‍Support

Jungheinrich has reached an agreement with the IG Metall union⁣ to implement a social plan for employees affected by⁤ the Lüneburg closure. This plan includes severance packages and support through a transfer company to ‍assist workers in finding new employment. A company ‍spokesperson described the agreement as a⁢ “socially acceptable solution” ⁤and a crucial step in the company’s transformation programme.

Profitable Plant Closure Raises ⁤Concerns

Despite the Lüneburg plant’s profitability, IG Metall has criticized the decision to ⁤close it. Lennard aldag of IG⁣ Metall⁣ Celle-Lüneburg stated, “We are not talking about a case of restructuring, but about ⁣the abandonment of a profitable production facility.” In 2024, Jungheinrich AG reported a surplus of 289 million euros on a revenue of approximately ⁢5.4 billion euros , and the company aims to increase its revenue to ten billion euros by 2030.

Factors Driving the Restructuring

The restructuring⁢ is driven⁢ by increasing⁣ price competition, particularly from Chinese manufacturers. While these competitors may ⁢not yet match⁢ the technical ⁤sophistication of Jungheinrich’s products, they offer⁢ considerably lower prices – often half the ⁤cost of comparable Jungheinrich forklifts in the mid-range segment. Jungheinrich is responding to⁤ this challenge through a joint venture ‍with EP Equipment, distributing vehicles from the third-largest Chinese ‍manufacturer in Europe . This collaboration aims to combine ‍German ‍engineering expertise ⁤with⁢ efficient ‍production structures.

Recent Labor Action

Prior to the agreement, production workers in Lüneburg engaged in an indefinite strike lasting over 80 days, beginning on November 20th, disrupting production at ⁣the facility.

Looking Ahead

Jungheinrich’s restructuring reflects the broader challenges facing established industrial manufacturers in a rapidly changing global market. The company’s focus on innovation, strategic partnerships, and cost optimization will be critical to achieving its enterprising growth targets and maintaining its position⁢ as a leader⁢ in the intralogistics industry. The company’s new ⁣brand “AntOn by⁤ Jungheinrich” ⁣ ‍is a key part of this strategy.