Traditional Machinery Manufacturer Heller Announces Job Cuts Amid Order Decline
The historic machinery manufacturer Heller, based in Nürtingen, Baden-Württemberg, is facing significant challenges as it responds to a substantial decline in orders. Founded in 1894, Heller has long been recognized for its CNC machine tools, which have been vital to the automotive industry. However, the ongoing difficulties within this sector have led to a pronounced decrease in order volumes, prompting the company to consider layoffs for around 240 employees.
As of late 2023, internal tensions were building at Heller. The interim CEO implemented a series of structural changes aimed at preparing the company for future challenges. Industry experts noted that Heller had previously neglected necessary transformations within the automotive sector, despite its reliance on this market. The company's works council had expressed concerns over potential further job reductions, a reality that is now becoming evident.
According to reports from local news outlets, the current order slump is directly affecting Heller's main facility, where the planned job cuts were presented to management, employee representatives, and union officials in mid-December. Heller operates as an international group with multiple branches and approximately 2,600 employees worldwide. The company's headquarters, however, is experiencing a contraction in workforce size due to the decline in demand for its machinery.
Thorsten Schmidt, the CEO of Heller, indicated that while a detailed plan for the job cuts is yet to be finalized, further discussions are scheduled for January 2025. Schmidt emphasized the need for the company to adopt a more decentralized approach and enhance its operational efficiency. To counter the downturn in automotive machinery sales, Heller plans to shift its focus towards universal machines.
Heller is not alone in facing these difficulties; other traditional manufacturers, such as Stihl, have also announced workforce reductions due to declining sales. The past few years have posed substantial hurdles for many industrial firms, with challenges stemming from the transition in mobility and the lingering effects of the COVID-19 pandemic. In 2021, Heller had anticipated cutting up to 250 jobs but managed to avert a more extensive layoff through a collective agreement that introduced a four-day workweek and short-time work arrangements.
As discussions continue, the proposed job cuts at Heller are not yet set in stone. The upcoming negotiations with the works council and union representatives are expected to play a crucial role in determining the final outcome of the workforce adjustments.
