STUTTGART / LONDON (IT BOLTWISE) – The traditional EMAG GmbH & Co. KG from Salach is forced to take drastic measures. Due to a persistently weak order situation, 455 jobs will be cut at the German locations. This is the second job cut in a short period of time, after 124 employees were laid off last year.
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EMAG GmbH & Co. KG, a mechanical engineering company with a long tradition, is facing a major challenge. Due to a sluggish order situation for years, the company is forced to cut 455 jobs at its German locations. The headquarters in Salach is particularly affected, where 300 jobs alone will be lost. This measure is a further step in a series of cost-cutting measures that the company began last year with the layoffs of 124 employees.
The reasons for this drastic step are varied. The machine tool manufacturing sector, to which EMAG belongs, has been recording declining incoming orders for three years. The Association of German Machine Tool Factories (VDW) reports a decline in orders of eleven percent in 2023, followed by a further decline of 19 percent in 2024. This trend continued in the first half of 2025 with a decline of five percent. This development can be observed not only on the German market, but also internationally, where new US tariffs, the weak economy in China and hesitant investments in Europe are putting a strain on business.
Markus Clement, CEO of the EMAG Group, explains that the current market situation is forcing the company to make these difficult decisions. He emphasizes that the organization must be adapted to the lower order volumes in order to ensure the company’s ability to act. The aim of the measures is to secure the future of the EMAG Group and to remain competitive in the long term.
The IG Metall union is dissatisfied with the company’s actions. She criticizes the fact that the works council negotiated the job cuts without her participation. Michael Kocken, 1st representative of IG Metall Göppingen-Geislingen, warns that going it alone in times of crisis not only causes social hardship, but can also jeopardize the trust of the workforce. The affected employees were informed about a social plan that had already been negotiated, but which does not provide for severance payments and relies exclusively on a transfer company.
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