Amid Wave of Layoffs, One German Manufacturer Finds a Way Back

While much of German industry is announcing tens of thousands of job cuts, the Büromöbelhersteller König + Neurath offers a rare success story. On 5 June, the company concluded its self-administered insolvency proceedings. After shedding 130 positions, 700 employees remain, and the firm has returned to regular operations thanks to financial concessions from its workforce.

That positive signal stands in sharp contrast to a cascade of restructuring plans, plant closures, and investment freezes hitting machinery, auto parts, chemicals, software, and even research institutes.

Massive Reductions at ZF and Mahle

The biggest single number comes from ZF Friedrichshafen, which plans to eliminate 11,000 to 14,000 jobs in Germany by 2028 — roughly one in four positions at the automotive supplier. The company cites heavy debts from electric-vehicle investments and a lowered revenue forecast.

At fellow auto-parts supplier Mahle, the Neustadt an der Donau plant will shut during the first quarter of 2027. An agreement reached after an eight-day strike in early June includes severance packages of up to 250,000 euros and a transfer company. Management called the walkout counterproductive to competitiveness.

Siempelkamp, BMK, and WMF-Mother Cut Deep

Machine-builder Siempelkamp announced on 3 June that 129 of 282 jobs at its Pallmann subsidiary in Zweibrücken would go. In-house production will cease, leaving only spare-parts distribution. The company blames a lasting global market slump and intense price pressure from China. Mayor Wosnitza expressed dismay and promised close oversight.

In furniture-supply, BMK Group is closing its Gaildorf-Bröckingen site by end of June. Forty workers will be offered a transfer company. BMK cited tough conditions in the furniture industry and high operating costs in Baden-Württemberg.

The WMF parent, Groupe SEB, is ending production at three German plants — Silit in Riedlingen plus sites in Hayingen and Diez — cutting around 250 direct jobs. Across the DACH region, 600 positions are to be eliminated. Talks on possible reindustrialisation or investor entry continue.

Chemicals, Research, and Software Join the Trend

Speciality-chemicals group Evonik specified its "Tailor Made" cost-cutting program: around 1,000 of the 1,500 German job losses will hit in 2026 alone. On 3 June the company set aside 100 million euros for severance pay to reduce bureaucracy and streamline structures.

The Fraunhofer-Gesellschaft plans to cut about 1,200 full-time positions, driven by a structural deficit from falling third-party research orders. President Hanselka believes the target can be met through natural turnover.

In software, GitLab announced on 3 June it would lay off 14 percent of its workforce — roughly 350 employees. The company is also exiting 22 countries to focus on automated-agent technologies.

Pharma Pullbacks

Boehringer Ingelheim on 3 June halted planned investments of 900 million euros for the 2027–2030 period, citing worsening health-policy conditions in Europe. Likewise, Eli Lilly sharply reduced its budget for a proposed plant in Alzey.

The contrast with König + Neurath's turnaround underscores how uneven the current industrial shakeout is. For every company that finds a way back, dozens are still navigating layoffs, closures, and strategic retreats.

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