Drive technology firm Voith Turbo is to shed around 230 jobs and relocate about 370 more staff as part of a restructuring designed to streamline the German business.
In a statement today, Voith Turbo chairman Uwe Knotzer said the move would make the business “more efficient and effective to sustainably secure competitiveness and future viability”.
He said Voith Turbo was “confronted with increasing competitive and margin pressure. At the same time, the need for investment is continuously increasing. Investments are necessary, if we are to maintain our position as a technology and innovation leader in the industries that we supply.”
Voith will centralize the business, which will see the closure of production sites in the German towns of Sonthofen and Zschopau, with their work transferred to “larger and more effective sites”.
The company said that the it expects the measure to have a “positive impact on Voith Turbo’s earnings in the low double-digit millions range by 2021”.
Knotzer added that the management was aware that the planned cuts at the affected locations “are very painful. And we are also aware of the responsibility we bear as a company. This is why we want to implement the forthcoming changes as fairly and socially responsible as possible, both in close collaboration with the works council. At the same time, we are firmly convinced that the planned measures are unavoidable if we are to keep Voith Turbo on the road to success in a rapidly changing environment.”