Homag closes 600 jobs worldwide – finances in distress

Homag closes 600 jobs worldwide – finances in distress

According to a report by www.stuttgarter-nachrichten.de, the Swabian mechanical engineering company Homag plans to cut around 600 jobs worldwide, including 350 in Germany. This move comes amid declining demand and a slowdown in new orders worldwide. The company expects significant savings and is planning measures such as volunteer programs, early retirement models, reductions in working time accounts and short-time work.

The job cuts at Homag are expected to have a significant impact on the market and the financial industry. The planned savings of around 25 million euros next year and around 50 million euros from 2025 could lead to an improved financial situation for the company, but a decline in sales of up to 15 percent is also expected in the coming year. This forecast suggests that the woodworking machinery market is experiencing an ongoing crisis that could impact other companies in the industry.

The effects of the job cuts could also have an impact on the parent company Dürr, which has already revised down its profit expectations for the current year. Previously, a profit margin of 160 million to 210 million euros was expected, but now the forecast is only between 110 million and 160 million euros. This provides an indication of possible losses or loss of revenue that could impact the entire financial industry.

It will be important to continue to monitor developments at Homag and the reactions of other companies in the industry in order to assess the exact impact on the market and the financial sector.