Festo is a family company that has grown into a giant employing over 20,000 people. people, including over 8 thousand in Germany. According to the Handelsblatt portal, the company is implementing a “global transformation program” to accelerate development and increase efficiency. It plans to save EUR 200 million annually around the world. Therefore, it will carry out reductions in various departments, eliminating up to 1,300 jobs. At the same time, the company announces that it will not close any of its production plants.
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Trade unionists about Festo's decision: it completely surprised us and the employees
Festo specializes in control and automation technology for industry. Its offer includes, among others: devices based on compressed air, as well as software and solutions based on artificial intelligence. The company directs its products mainly to the food, automotive and medical sectors. Growing competition in recent years has significantly weakened its market power, causing revenues to decline by 3.7%. in 2025, to approximately EUR 3.33 billion. This was the third decline in a row.
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Trade unions were strongly against laying off such a large number of employees. Max Czipf, representative of the IG Metall union in Esslingen (Baden-Württemberg), where Festo is headquartered, said it was a “big mistake” on the company's part and could have a negative impact on the economy and employment in the region.
– This completely surprised us and the employees, said Czipf, quoted by the Handelsblatt portal. — Anyone who eliminates jobs during the economic crisis is responsible for the damage caused to the industrial base, he warned.
