Machinery maker KraussMaffei Technologies GmbH is in talks with workers' representatives in Europe over "several hundred" layoffs for the German company, although it says those job cuts will not impact its North American subsidiary.
The war in Ukraine, supply chain disruptions and transportation bottlenecks contributed to a loss of some $230 million last year at KraussMaffei, including a goodwill impairment of at least $108.6 million.
Planned projects, such as moving the company headquarters and manufacturing plant in Allach, Germany, to a new facility about 15 miles away in Parsdorf, also are taking a financial toll on the builder of machinery for injection molding, extrusion, reaction process and additive manufacturing.
Since 2018, KraussMaffei has invested more than $100 million in four new locations as part of a modernization strategy. The other three sites are Jiaxing, China, and Einbeck and Laatzen, Germany.
During the same period, the COVID-19 pandemic struck, cities locked down, the supply chain kinked, Russia invaded Ukraine, inflation hit globally and interest rates spiked.
Now company officials say tough steps need to be taken to shed expenses, including the layoffs of "several hundred" employees whose jobs are not related to manufacturing and assembly.