BayWa AG on the verge of collapse: 1,300 job cuts and many closures in Bavaria!

BayWa AG on the verge of collapse: 1,300 job cuts and many closures in Bavaria!

BayWa AG, a namesake in the German agricultural and building materials industry, is facing unprecedented challenges. Loud Mercury The company recorded a depressing loss of 1.6 billion euros last year. This situation represents the most serious crisis in BayWa's more than 100-year history. "We have the burden of debt and stagnating demand in our core business," says CEO Frank Hiller. In addition, the problems are not only due to high depreciation, but also affect almost all areas of the company.

On a strategic level, BayWa AG is planning comprehensive restructuring measures. The restructuring concept calls for the reduction of 1,300 jobs, with more than half of these measures having already been implemented. In order to improve efficiency and competitiveness, a large part of the 26 announced location closures, 13 of which were in Bavaria, have already been carried out. Locations such as Altensteig, Rothenfeld and Triftern, all closed in June 2025, are particularly affected. These closures affect both agricultural areas and building materials locations, which are necessary to consolidate the financial situation.

The renovation concept

As part of these restructuring plans, BayWa also plans to sell its foreign subsidiaries, reports BR with. Companies such as New Zealand fruit retailer T&G Global and Dutch cereal trading company Cefetra could be sold to reduce debt and focus on core markets in Germany. All of this is happening against the background that BayWa has seen its mountain of debt grow to over five billion euros in recent years.

The management is also committed to sustainably strengthening the administrative structures and modernizing IT. A capital increase by issuing new shares is intended to provide the necessary financial resources to reduce debt. Following the resignation of former CEO Klaus Josef Lutz, the company's financial situation has deteriorated rapidly, prompting Verdi, the union, to criticize the restructuring plans as it fears impacts on employees.

Strategies for overcoming the crisis

In order to get out of the crisis, targeted measures are required. How Gravenfeld describes, a comprehensive analysis of the company's situation is the first step. This includes both internal assessments, such as the financial situation and the efficiency of operational processes, as well as external analyzes of the market and competitive conditions. A proactive approach helps to identify weak points at an early stage and address them effectively.

Given the challenge of securing jobs, clear communication and employee involvement is of considerable importance. Training, incentive systems and a positive corporate culture are at the top of the agenda to promote employee motivation and performance.

Whether BayWa can turn things around in this way remains to be seen. The next few months will show whether the targeted restructuring measures are bearing fruit or whether they may not be enough to avert insolvency and the employees will be left behind.