Traditional German Sewing Machine Manufacturer Faces Major Job Cuts

The renowned sewing machine manufacturer Pfaff, based in Kaiserslautern, is facing severe challenges as previous efforts to avoid layoffs through short-time work have proven insufficient. The company, which has been in operation since 1862, is now contemplating extensive job reductions as it struggles to recover from ongoing economic difficulties.

In the wake of the COVID-19 pandemic and the geopolitical tensions arising from the conflict in Ukraine, Pfaff Industriesysteme und Maschinen AG has been grappling with declining demand from industrial clients. The company's financial woes have been exacerbated by a significant downturn in the global sewing machine market, as noted by Richard Müller, the head of the works council. This decline is not isolated to Pfaff; other industry players, including Groz-Beckert, a leading manufacturer of precision tools for the textile sector, have also reported considerable revenue losses.

In an effort to stave off layoffs, Pfaff had implemented short-time work measures for its 154 employees in mid-2024. However, these measures have not yielded the desired results, prompting the company to consider a broader workforce reduction. Müller confirmed that employees were informed several weeks ago about the serious situation and potential job cuts, but specifics regarding the extent of the layoffs remain unclear as discussions with management are ongoing.

Historically, Pfaff has been a significant player in the sewing machine industry, once employing over 10,000 individuals at its peak. Today, the firm operates from a facility near Kaiserslautern, producing industrial sewing machines, but its workforce has drastically dwindled. The company, now under Chinese ownership since its re-establishment in 2009, continues to manufacture machinery in Germany despite its tumultuous history marked by various crises and insolvencies.

As the future of Pfaff hangs in the balance, the company is exploring potential solutions to mitigate the impact on its workforce. Müller expressed cautious optimism about finding a favorable resolution for the employees, although he acknowledged the challenges ahead. The situation remains fluid, and further developments are anticipated in the coming weeks as negotiations progress.