BayWa to Close 26 Locations and Cut 1,300 Jobs Amid Financial Struggles

BayWa AG, a prominent player in the construction and gardening supply industry, is set to close 26 of its locations across Germany, significantly affecting its workforce. This decision comes as the company grapples with severe financial challenges, necessitating drastic measures.

Headquartered in Munich, BayWa has a long-standing history of over 100 years, initially focusing on agricultural supplies. However, recent months have seen the company enter a crisis, prompting a reevaluation of its operations. The closures will primarily impact the state of Bavaria, with nearly half of the affected stores located there.

As part of this restructuring, approximately 1,300 full-time jobs out of a total of 8,000 will be eliminated. The layoffs will predominantly occur at the company's headquarters in Munich, while the agricultural technology divisions are reportedly unaffected.

According to recent reports, the first wave of closures is scheduled for April 30, with additional stores in Neu-Ulm and Obertraubling shutting down. Further closures are anticipated at the end of June and December, affecting locations such as Kronach and Schwandorf.

BayWa has already communicated these changes to its employees, with measures being taken to provide alternative job opportunities for some affected individuals. Many will exit the company through agreements made in collaboration with employee representatives to ensure socially responsible solutions.

While the job cuts are projected to unfold over the next several years, with a focus on reducing administrative positions, the company has assured stakeholders that it is not facing imminent insolvency. The emphasis remains on restructuring and managing the company's substantial debts.

BayWa's historical roots trace back to 1923 when it first aimed to support rural areas with essential agricultural goods, eventually growing to become Germany's largest agricultural trader. Today, the company is also invested in innovative and sustainable solutions addressing basic needs such as food, housing, heating, energy, and mobility.

With around 400 locations throughout Germany and a significant online retail presence, BayWa continues to adapt its business model in response to market demands and operational hardships.