Schmitz Cargobull Predicts 85% Sales Drop, Announces Layoffs

Schmitz Cargobull, Germany’s largest manufacturer of trailers for HGVs, plans to eliminate one-eighth of its workforce. It was announced on April 8 that around 500 of the company’s 4,000 employees will lose their positions. The company stated it plans to take a number of social factors into consideration when selecting the positions to be eliminated. In addition, all 350 temporary contract positions with the company will not be renewed.

The job cuts are a reaction to the massive decline in contracts the company has experienced and a general weakening of the transportation industry. The trailer manufacturer expects to build fewer than 10,000 units this year, a reduction of around 85 per cent when compared with the 66,000 produced in the 2007/2008 fiscal year.