Jungheinrich closes plant in Lüneburg: 380 jobs at risk!

Jungheinrich closes plant in Lüneburg: 380 jobs at risk!

Bad news from the industry: The renowned forklift manufacturer Jungheinrich is planning to close its factory in Lüneburg by the end of 2027. Like that Mercury According to reports, around 400 employees will be affected by the closure plans, with around 300 jobs being lost. In addition, around 100 jobs are to be relocated to a new location.

The company, which produces forklifts and pallet trucks, is making this drastic decision to save around 100 million euros. These measures are part of a larger strategy that is intended to help secure Jungheinrich's global competitiveness. There are voices of concern in the region, particularly from trade union representatives. Florian Rebstock from IG Metall sharply criticized the closure and emphasized the loss of valuable know-how, as the Lüneburg factory functioned as a “special building” that produces tailor-made vehicles for specific customer needs. The board informed the workforce about these drastic plans on Monday.

Job cuts in several locations

The closure in Lüneburg is not the only one that worries Jungheinrich employees. The locations in Norderstedt and Hamburg are also affected. In Norderstedt, where around 1,500 employees work, three-digit job cuts are expected. A double-digit reduction is also planned at the Hamburg headquarters, which employs over 1,200 people NDR reported. A total of 1,000 jobs are to be cut worldwide.

Behind the massive cuts is a change in demand in the market for forklifts and warehouse technology. More and more customers are turning to cheaper machines and devices, which has had a significant impact on Jungheinrich's business strategy. In the 2024 financial year, the company achieved sales of around 5.4 billion euros, but increasing competition and decreasing demand make it necessary to adjust capacities.

Industry in turmoil

The challenges for Jungheinrich are part of a larger trend in German industry. Like that EY Industry barometer shows that sales of German industrial companies fell by 0.2% in the first quarter of 2023 compared to the previous year. This is now the seventh consecutive quarter of declining sales. Concern about jobs is therefore a top priority in many industries: around 101,000 jobs were cut in German industry in just one year.

While exports to some countries are declining, there remains hope that the economy will stabilize. The employees in the Lüneburg region are now faced with the challenge of having to reorient themselves in this difficult environment. A good hand for the future will be required in many places.