Stihl Cuts 500 Jobs Worldwide
- WAIBLINGEN, Germany (AP) — Stihl, the chainsaw and garden equipment manufacturer, announced plans to eliminate approximately 500 positions worldwide due to a challenging economic climate.
- As previously reported, Stihl anticipates cutting jobs in Germany in the low three-digit range.
- At the close of last year,Stihl employed roughly 19,700 people globally,a slight decrease from the end of 2023.
Stihl to Cut 500 jobs Globally Amid Economic Headwinds
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WAIBLINGEN, Germany (AP) — Stihl, the chainsaw and garden equipment manufacturer, announced plans to eliminate approximately 500 positions worldwide due to a challenging economic climate. Michael Prochaska, the company’s personnel director, stated in Waiblingen, near Stuttgart, that “We must, of course, adapt the cost and personnel structure to the realities of the market. That is very clear.” The job cuts will primarily affect administrative roles.
Germany to See Job Reductions
As previously reported, Stihl anticipates cutting jobs in Germany in the low three-digit range. The company intends to implement these reductions through socially responsible measures, including voluntary severance packages and incentivized early retirement. Direct layoffs are not planned, according to the company.
Global Workforce Figures
At the close of last year,Stihl employed roughly 19,700 people globally,a slight decrease from the end of 2023. The company’s German headquarters employs more than 6,000 individuals across multiple plants in the Stuttgart region, as well as in the districts of Konstanz and Weinsheim in Rhineland-Palatinate.
Post-Pandemic Adjustment
During the COVID-19 pandemic boom, stihl’s global workforce peaked at around 21,600. CEO Michael Traub explained that the company experienced a period of “euphoria,” leading to the creation of numerous positions and expectations of high growth rates. Though, the anticipated growth has not materialized to the extent initially projected.
Shift to Battery-Powered Devices Impacts Jobs
The increasing shift toward battery-powered equipment could also lead to further job losses in the future. in 2024, battery-operated products accounted for a quarter of stihl’s sales, with projections indicating an increase to 35% by 2027. Currently, the company’s German operations primarily focus on manufacturing combustion engine-powered devices.
Traub noted that “If the share of our gasoline-powered devices in total sales decreases, employment in Germany will be lower.” He added that the exact impact remains to be seen. Furthermore, he stated that this loss could not be offset because “the competitive conditions in Germany are not good enough to make battery devices here. Period.”
Revenue Increase in 2024
Following a decline in 2023, the company’s revenue increased by 1.1% to 5.33 billion euros last year. While this represents a positive trend, Stihl remains below its COVID-19 pandemic revenue record of 5.5 billion euros. The company described the result as satisfactory. as a privately held family business,Stihl traditionally does not disclose specific profit figures.
Cautious Outlook
The company’s outlook remains cautious. Traub stated that Stihl generates more than 90% of its revenue abroad, making it susceptible to global economic fluctuations. The manager anticipates low single-digit growth for the current year and the years to come.
Stihl, which identifies itself as the world’s leading chainsaw manufacturer, benefited significantly during the COVID-19 pandemic as many people focused on home and garden improvements, allocating significant funds to these areas. In 2019, prior to the pandemic, the company’s revenue was considerably lower, at approximately 3.9 billion euros.
Stihl Job Cuts and Outlook: A Comprehensive overview
This article provides an overview of Stihl’s recent developments, including job cuts, financial performance, and future outlook. As the world’s leading chainsaw manufacturer, Stihl faces economic headwinds and a changing market landscape.
Why is Stihl Cutting Jobs?
Stihl is implementing job cuts due to a challenging economic climate. The company aims to adapt its cost and personnel structure to the realities of the market. Primarily, the job cuts will affect administrative roles.
What are the main reasons for job losses at Stihl?
- Challenging economic climate
- Shifting demand towards battery-powered equipment
How Many Jobs Are being Cut?
Stihl plans to eliminate approximately 500 positions worldwide. These job cuts will mostly impact administrative roles. The company is also planning additional reductions in Germany.
Where will these job cuts take place?
The job cuts will primarily impact administrative roles globally, with specific reductions planned for Germany.
Job Cuts in Germany
Stihl anticipates cutting jobs in germany in the low three-digit range. The company intends to use socially responsible measures, such as voluntary severance packages and incentivized early retirement, to implement these reductions.The company does not plan to implement direct layoffs.
Stihl’s Workforce: Before and After
At the close of last year, Stihl employed roughly 19,700 people globally, a slight decrease from the end of 2023. During the COVID-19 pandemic boom, Stihl’s global workforce peaked at around 21,600 employees.
here’s a summary:
- Global Workforce (end of 2024): Approximately 19,700
- Peak workforce (during COVID-19): Approximately 21,600
Impact of the Shift to Battery-Powered Equipment
The increasing shift to battery-powered equipment is also expected to influence employment. battery-operated products accounted for a quarter of Stihl’s sales in 2024, with projections indicating an increase to 35% by 2027. Currently, Stihl’s German operations primarily focus on manufacturing combustion engine-powered devices.
How is the shift to battery-powered equipment affecting Stihl’s workforce?
The shift to battery-powered equipment may led to further job losses, particularly in Germany. However, the company has noted, “the competitive conditions in Germany are not good enough to make battery devices here, period.”
Stihl’s Financial Performance: Revenue and Outlook
Stihl’s revenue increased by 1.1% to 5.33 billion euros last year, following a decline in 2023. While this represents a positive trend, the company remains below its COVID-19 pandemic revenue record of 5.5 billion euros. The company views the result as satisfactory. As a privately held family business, Stihl does not disclose specific profit figures.
Is Stihl’s financial outlook positive?
The company’s outlook remains cautious. Stihl generates more than 90% of its revenue abroad, making it susceptible to global economic fluctuations. The manager anticipates low single-digit growth for the current and coming years.
| Metric | Details |
|---|---|
| 2024 Revenue Increase | 1.1% to 5.33 billion euros |
| 2023 Revenue | decline |
| COVID-19 Pandemic Revenue Record | 5.5 billion euros |
| Outlook | Cautious with low single-digit growth anticipated |
Stihl’s Response to the COVID-19 Pandemic
Stihl benefited significantly during the COVID-19 pandemic due to increased demand for home and garden improvements. In 2019, prior to the pandemic, the company’s revenue was approximately 3.9 billion euros.