Dürr to cut 500 jobs at subsidiary amid falling demand

Dürr, a German mechanical and plant engineering company, announced plans to eliminate around 500 jobs worldwide at its subsidiary, BBS Automation. The company stated that approximately 200 positions will be cut at its four German sites. These workforce reductions are scheduled to occur throughout the current year and into the next.

The company indicated that it aims to avoid compulsory redundancies where possible, though they have not been ruled out. Dürr plans to initiate discussions with employee representatives soon. The efficiency program is designed to bolster the subsidiary's competitiveness and earnings power, with the goal of achieving annual savings of approximately 30 million euros. The company has factored in restructuring costs between 40 and 50 million euros for 2026.

BBS Automation, which Dürr acquired in mid-2023, employs roughly 2,300 people globally. Its business includes production systems for the automotive industry, particularly for electric vehicles, as well as equipment for manufacturing medical products like syringes. The decision to reduce staff stems from a sluggish economic climate and declining orders from automotive manufacturers. Despite a growing demand for electric cars, the industry is currently hesitant to invest in new production systems, focusing instead on maximizing the utilization of existing lines.

In light of these market conditions, Dürr is also revising its growth projections for BBS Automation. The company now anticipates revenues exceeding 600 million euros from 2030 onwards, a reduction from the previous target of 800 million euros. This follows a previous announcement in 2025 regarding the elimination of about 500 administrative positions, more than half of which were in Germany, as part of a broader group restructuring after divesting its environmental technology division.

Despite the challenges faced by BBS Automation, Dürr has affirmed its annual forecast. The company expects that the weaker performance of its subsidiary will be offset by contributions from other business units. Dürr reported an increase in order intake from April to June, rising to 914 million euros from 807 million euros in the same period last year. Revenue saw a slight decrease of about two percent to 981 million euros, while the margin on earnings before interest and taxes (EBIT) improved slightly to 4.3 percent. The Automotive division, in particular, showed strength, securing significant orders for paint shops from Brazil and India.

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The efficiency program is designed to bolster the subsidiary's competitiveness and earnings power, with the goal of achieving annual savings of approximately 30 million euros.