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Rehau cuts over 100 jobs in Erlangen: future uncertain!
Plastics manufacturer Rehau is cutting 101 jobs in Erlangen due to economic challenges and strategic realignment.
Rehau cuts over 100 jobs in Erlangen: future uncertain!
The Erlangen region is confronted with worrying developments as the well-known plastics manufacturer Rehau announces massive job cuts. In a surprising decision, company management has decided to cut over 100 jobs across Germany, with a significant proportion of these cuts affecting the Erlangen location. Report this in Franconia.
A total of 203 employees are affected by the restructuring, with 101 of these positions being eliminated in Germany. CEO Rafael Daum describes the situation as unavoidable in order to ensure competitive and profitable growth in the future. The reasons for these drastic measures lie in the ongoing economic challenges, volatile markets and price and quality pressure from customers.
Strategic realignment
Rehau Building Solutions has initiated a strategic realignment for the Europe, Middle East and Africa (EMEA) regions. This realignment includes a comprehensive restructuring of sales. Germany will be managed as a separate sales unit, while the withdrawal from eight markets, particularly in Eastern Europe, is planned. At the same time, the presence in core markets such as Germany, Austria and Italy is being expanded. A bold step that is described as a risky bet to focus on the core markets, he added SHK Tacheles.
The restructuring of the business structure is designed so that Rehau Building Solutions' products and services are divided into four business areas: Infrastructure Solutions, Plumbing Solutions, Thermal Flow Solutions and Modular Systems. The focus here is clearly on drinking water supply, heating and cooling systems and wastewater solutions. The sustainable use of rainwater and district heating will also be brought into focus.
Impact on the workforce
The affected workforce will be personally informed about the job cuts. However, Rehau has also developed fair severance packages for employees to counteract the loss of jobs. While the restructuring will have a serious impact on some areas of the company, Rehau Window Solutions will not be affected and will remain unaffected by the planned changes.
The decline in jobs in the plastics sector cannot be viewed in isolation. In the context of the German plastics industry, it should be said that it includes a wide variety of companies, including plastics processing companies. The main areas of application are diverse, from packaging to the construction and automotive industries to medical technology. Compared to other European countries, Germany occupies a leading position in terms of production, foreign trade and research and development Statista reported.
In conclusion, Rehau's decision to cut jobs and realign its EMEA strategy will place a heavy burden on its workforce and the region. Everyone involved hopes that the markets will soon stabilize and a positive turnaround in the company, even if the challenges are enormous.