Krones to make hundreds redundant

Germany | Krones is facing strong headwinds. Counter-measures, introduced in July this year, included a hiring freeze and cuts to material costs. But on 17 September 2019 Krones announced that there will be redundancies. Up to 400 jobs could be lost.

A spokesperson for Krones AG has confirmed that between 300 to 400 jobs could be affected. This number applies to all its five locations in Germany and to both permanent employees and temporary workers. The world’s leading manufacturer of filling and packaging technology employs over 9,600 people in Germany alone.

At the firm’s works meeting on 16 September, CEO Christoph Klenk pointed to high personnel and material costs, which are increasingly affecting Krones adversely. At the same time, the demand for filling and packaging technology is not growing as strongly as before and competitive pressures are rising.  

For the first six months 2019, Krones reported an EBIT of EUR 47.5 million (USD 52.5 million) compared with EUR 109.7 million in the same period last year. Turnover stood at EUR 1.9 billion (USD 2.1 billion).

As worries are mounting that the global economy could tip into recession and the future of plastic bottles is hanging in the balance, Krones’ stock has taken a beating. Between mid-September 2018 and mid-September 2019 it has lost over 40 percent in value.