Stihl reacts to the challenging economic situation
Stihl is reacting to the challenging economic situation and plans to cut around 500 jobs worldwide. The company needs to adjust its cost and personnel structure to the market conditions, quoted personnel director Michael Prochaska by Bildzeitung. The administration is expected to be particularly affected.
Socially responsible reduction in Germany
In Germany, the reduction should take place as socially responsible as possible, including through retirements and a voluntary program. No terminations are planned.
Impact of the shift to battery-powered devices
In the future, the shift towards battery-powered devices could also lead to a loss of jobs, according to Bild. By 2024, a quarter of the products sold had a battery, and the goal is to reach 35% by 2027. Stihl mainly manufactures motor equipment in Germany. The loss of jobs cannot be compensated for, as the competitive conditions in Germany are not good enough to produce battery-powered devices there.
Key success factors and positive annual report
"Key success factors remain close to the customer, technological advancement of products and solutions, and the consistent expansion of global presence," says CEO Michael Traub. Stihl has drawn a positive balance sheet for 2024 and is setting the course for the future.
Investments and transformation
Stihl invested €349 million worldwide in 2024, including €133 million in the headquarters in Germany. The headquarters in Waiblingen is at the center of transformation, with the shift from petrol to battery-powered products requiring a realignment in both production and administration areas.
Future outlook
CEO Michael Traub anticipates a moderate single-digit growth in revenue in the coming years, amidst high competition and transformation pressures.
