Norbert Steinkemper

Restructuring at the Broetje-Automation Group


The management of the Broetje-Automation Group has decided on a comprehensive restructuring program to adjust capacity in the Broetje-Automation Group. The company is thus reacting to a significant decline in incoming orders caused by the ongoing negative market situation in the aviation industry as a result of the Corona pandemic.

Worst crisis since the Second World War

The aviation industry is experiencing the worst crisis since the Second World War as a result of the global measures to combat the corona pandemic. Aircraft manufacturers and suppliers worldwide are currently reducing their forecasts due to the collapse in demand for aircraft, and planned investments are being cancelled or postponed. As a result, the mechanical and plant engineering sector for the aviation industry is also experiencing an unprecedented decline in orders, which is also affecting Broetje-Automation.
Since it is already becoming apparent that with continuing restrictions and persistently low demand over several years, the market is not expected to normalize, Broetje-Automation must adapt its corporate structures to the changed market environment.

Measures due to the corona pandemic

The management has now informed the workforce that around 200 jobs will be affected by the restructuring measures in the entire corporate group worldwide. The majority of these jobs will be at the German locations. Unfortunately, the Grenzach-Wyhlen site cannot be maintained under these circumstances and will be closed. Extensive restructuring measures are also unavoidable at the sites in Bietigheim-Bissingen and at the headquarters in Rastede in order to achieve the necessary savings. Negotiations are currently underway with the works councils at the individual sites in order to make the job cuts as socially acceptable as possible.
The management felt compelled to take this step due to a lack of capacity utilization. At the same time, numerous measures were taken to open up new business areas in other sectors. Lutz Neugebauer, CEO of the BA Group, commented: “Over the summer, we have already achieved remarkable results of new project approaches in the textile industry, the healthcare sector and other industries. Nevertheless, the new approaches cannot compensate for the massive decline in the aviation industry. In view of the market environment, the measures now taken are necessary to secure the remaining 430 jobs and to enable the company to achieve a successful long-term future. We are working closely with the works councils to create a solid basis for a good future for the company”.
In contrast to previous crises, the aviation industry is not expected to recover quickly from the Corona-related slump. Analysts and industry associations forecast that passenger numbers will not return to pre-corona levels before 2024.