Industrial equipment maker Festo plans to cut around 1300 jobs in Germany. Reasons include market changes, competition from Asia and geopolitical crises. The company aims to save 200 million euros per year worldwide.
Festo from Esslingen announced it would streamline structures in Germany to implement a global transformation program. All production sites are to be preserved, chief executive Thomas Böck stressed.
IG Metall sharply criticized the move. Official Max Czipf said the extent had caught everyone cold and would harm the industrial location.
Jobs will also be cut abroad. The company and works council are now discussing socially acceptable solutions.