The appliance manufacturer Miele reacts to the drop in demand for its products and the drastic increase in prices. Around 2,000 jobs will be eliminated worldwide and 700 will be relocated elsewhere, as the family business announced on Tuesday in Gütersloh. Management had previously informed staff about the plans.
Miele is managed by two ownership groups. At the top are Markus Miele (55) and Reinhard Zinkann (66). Miele wants to save around 500 million euros by 2026 with the announced growth and cost reduction program, according to the statement.
2,000 jobs worldwide: traditional company Miele eliminates jobs
Miele benefited from strong demand for home appliances during the coronavirus pandemic. In 2022, sales increased by 12.2 percent to €5.43 billion, more than ever in the company's history. Figures for 2023 are not yet available. Miele talks about a decline in business worldwide. According to the statement, the economic consequences of the war in Ukraine had a particular impact. The premium segment is especially affected.
According to preliminary figures, sales fell by around 9 percent in the last financial year. The number of units sold fell by approximately 18 percent compared to the previous year. A quick recovery of the markets is not in sight.
To Poland: 700 Miele jobs will also move
“What we are currently experiencing is not a temporary downturn in the economy, but rather a lasting change in the framework conditions that matter to us and to which we have to adapt,” management said in an internal information message to employees. 2,000 jobs will be eliminated and around 700 relocated. From 2027, all household washing machines will be assembled at the Polish factory in Ksawerów.
IG Metall criticized the plans. The company is moving away from its brand promise and apparently now focuses on the cheapest instead of the best, according to the announcement, North Rhine-Westphalia district director Knut Giesler. The market situation for Miele is currently tense. After the record years of 2020 to 2022, there is no reason to resort to these types of measures when the first headwinds arise.
This year the company celebrates its anniversary: Miele was founded 125 years ago. The group has around 23,000 employees worldwide, approximately half of them in Germany. Around 5,600 people work at Gütersloh.