Traditional company Pfaff is facing a massive job cuts!

Traditional company Pfaff is facing a massive job cuts!

The traditional company Pfaff from Kaiserslautern is faced with considerable challenges that could result in a planned larger job cuts. According to Rheinpfalz the consequences of several crises are conditional. Pfaff Industriesysteme und Maschinen GmbH has registered short -time work for 2024, with 154 employees in Kaiserslautern. This measure is intended to help to avoid tougher steps such as operational terminations.

The company, whose predecessor was founded in 1862, has a long tradition in sewing machine production. Today's Pfaff Industrie Systems and Machine AG was founded in 2009 after bankruptcy. Despite stable order situations in the past, especially during Corona pandemic, Pfaff is now facing the pressure of external factors, such as the loss of business in Russia and Belarus, which made up for about 15% of sales.

effects on the workforce and the industry

The depressed sales can often be seen in connection with the challenges of the automotive industry, which is an important buyer for Pfaffs products. Companies like Mercedes-Benz have already painted night shifts and released temporary workers, which increases the pressure on suppliers such as Pfaff. BW24 reported that the short-time work was reported to react to the declining orders, while the salaries of the employees concerned covered by short work become. Managing Director Frank Meyer, however, expressed the confidence that the short -time work will be temporary.

The difficulties in German industry are not isolated. CE interim describes that the processing business in Germany is contrasted with structural challenges, which are tightened by high energy costs, competition from emerging countries and the geopolitical situation. While short -time work represents a strategy for the suspension of layoffs in times of crisis, many experts consider it insufficient for solving long -term problems.

The way forward

The strategies for coping with the current crisis require courageous measures and investments in new technologies and efficiency increases. Current market conditions, which are characterized by structural change in the processing industry, are forcing companies to find innovative ways to secure their competitiveness.

Whether Pfaff will be able to emerge from this phase strengthened remains to be seen. Negotiations on the details of the planned job cuts are still underway. The coming months will be decisive, especially for the employees who are affected by the measures.