The household appliance manufacturer Miele is reacting to a slump in demand for its products and drastic price increases. Around 2,000 jobs will be eliminated worldwide and 700 will be relocated to other locations, as the family business in Gütersloh announced. Management had previously informed the workforce about the plans.
Miele is managed by two ownership groups. At the top are Markus Miele (55) and Reinhard Zinkann (66). By 2026, Miele wants to save around 500 million euros with the announced cost reduction and growth program, according to the statement.
Miele benefited from strong demand for household appliances during the corona pandemic. In 2022, sales rose by 12.2 percent to 5.43 billion euros, more than ever in the company’s history. Figures for 2023 are not yet available. Miele speaks of declining business worldwide. According to the statement, the economic consequences of the war in Ukraine had a particular impact. The premium segment is particularly affected. According to preliminary figures, sales fell by around 9 percent in the last financial year. The number of units sold fell by around 18 percent compared to the previous year. An early recovery of the markets is not in sight.
Washing machines are to be assembled in Poland
“What we are currently experiencing is not a temporary dip in the economy, but rather a lasting change in the framework conditions relevant to us that we have to adapt to,” said management in an internal information message to employees. 2,000 jobs are to be cut and around 700 relocated. From 2027, all household washing machines will be assembled in the Polish factory in Ksawerów.
IG Metall expressed criticism of the plans. The company is moving away from its brand promise and is now apparently focusing on cheaper instead of better, said North Rhine-Westphalia district manager Knut Giesler, according to the announcement. The market situation for Miele is currently tense. After the record years from 2020 to 2022, there is no reason to resort to such measures when the first headwinds arise.
This year the company is celebrating its anniversary: Miele was founded 125 years ago. The group has around 23,000 employees worldwide, around half of them in Germany. Around 5,600 people work in Gütersloh.
