Miele slashes workforce by 1,300 in Germany

Household appliance manufacturer Miele is facing financial difficulties and has announced plans to cut around 1,300 jobs in Germany. The decision was made in conjunction with a new collective agreement with the IG Metall union, which spans from August 2024 to December 2028 and includes an investment of 500 million euros.

In order to reduce the number of employees, Miele will offer severance payments and early retirement schemes. The company has stated that redundancies are generally prohibited until the end of 2027, with the possibility of employees being dismissed if job cuts do not meet expectations. The decline in demand following the end of the pandemic has resulted in a decrease in sales from just under five billion euros in 2023 to 5.4 billion euros in 2022.

The decision to cut jobs has been met with both praise and concern from employee representatives. While job cuts are disappointing for affected individuals, the generous severance packages were noted as a positive outcome by IG Metall. Miele’s investment in its German locations was seen as a good sign by works council members.

Rebecca Steinhage, Miele’s HR managing director, expressed confidence in the agreed-upon measures, stating they provide a strong foundation for implementing necessary changes without resorting to layoffs. The finalization of the collective agreement is pending approval from IG Metall members, who are set to vote on the outcome next week.

By Sophia Gonzalez

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