Plastics machinery maker KraussMaffei Technologies GmbH will cut "several hundred" jobs as part of a global program to reduce its costs and improve efficiency.
"In the light of internal and external challenges, taking actions to enable us to be more competitive is important to restore profitability at KraussMaffei," CEO Li Yong said in a news release. "Therefore various measures have been initiated to improve operational performance, to increase work efficiency and to reduce the cost base, including job reductions. We are confident that KraussMaffei will get back on the road to success."
The company emphasized that it will not cut job in manufacturing and assembly, and it will work out "socially acceptable solutions for employees affected by the planned cutbacks." Details will be negotiated with the German Works Council over the coming weeks.
"At the same time, we are keen to offer attractive and future-proof jobs to those employees who stay with us," Chief Financial Officer Joerg Bremer said in the Feb. 28 release.
KraussMaffei recently relocated its headquarters and main plant from Allach, Germany, to Parsdorf. Both cities are near Munich. The was one of two long-term investments in the company since it was acquired by its current Chinese owners in 2016. Spanning some 250,000 square meters the activities in Parsdorf include machines for injection molding and reaction processing, additive manufacturing, mechanical manufacturing and automation. The new plant allows the company to modernize its production from the ground up.
The job cuts will not be the only action taken by KraussMaffei to cut costs.
"In a next step, we are now adjusting our cost base. We are convinced that the company has thus laid the foundations for the turnaround and the return to growth," said Zhang Chi, chairman of the supervisory board.