There are few advertising slogans as well-known as Miele's. Now, the company has returned to the motto it started with 125 years ago: Immer Besser ('always better').
However, from a business economic standpoint, things are not going well. Just as the household appliance manufacturer is about to celebrate its anniversary (founded on July 1, 1899), Miele is forced to lay off employees. The producer of washing machines, dryers, dishwashers, vacuum cleaners, coffee machines, and refrigerators is cutting 1,300 jobs, primarily in Gütersloh, where both the headquarters and the largest factory of Miele are located. This was reported by the Dutch newspaper Trouw.
Despite the restructuring, Miele's global workforce remains large. Photo © Tupungato | Dreamstime.com.
Due to decreased demand for household appliances and rising costs for materials, energy, and personnel, Miele finds itself compelled to take drastic measures. The company is moving 700 jobs to Poland and eliminating 600 positions across Germany. This decision is made because production in Poland, where factory labour costs are lower, is significantly cheaper.
According to Olaf Zwijnenburg, a retail specialist at Rabobank, this is a double-edged message: bad news for employment in Germany, but positive for the European manufacturing industry, as production and employment remain within the region.
Historically, Miele has adhered to producing domestically, but economic pressures now force the company to act differently. Despite the restructuring, Miele's global workforce remains substantial, with about 23,000 employees, half of whom are in Germany.
Miele announced earlier this year that it would cut 2,700 jobs to save costs. The decline in demand for their products, possibly due to a general downturn in consumer electronics and market saturation following the coronavirus years, plays a role in this. In the fiscal year 2022, Miele achieved a record turnover of 5.43 billion euros and had more staff than ever before.
The impact of these measures on Miele Netherlands is still unclear. A spokesperson speaks of 'a challenging situation' and indicates that the consequences outside Germany are still being investigated and will be announced later.
Source: Trouw