Fendt in crisis: Is there a threat of job cuts in Ostallgäu?

Fendt in crisis: Is there a threat of job cuts in Ostallgäu?

The situation at Fendt in Marktoberdorf is tense! There was a strike outside the factory gates last week to fight for higher salaries. The industry, already struggling, is faced with new challenges. Rumors of massive job cuts are making the rounds, while company management remains cautious.

Gabriele Formann, works councilor and Fendt veteran, is combative. She has been part of the company for 41 years and is committed to the workforce. Despite the gloomy forecasts, she believes in overcoming the crisis together with management. “We want to get through the bottom together,” she explains. But the reality is harsh: “In terms of current sales, there are too many of us,” says Formann. The uncertain political situation in Germany and the USA is increasing the pressure on the company.

Decline in sales and production stop?

The situation is alarming! Fendt had to register short-time work at several locations in the summer. Global demand for tractors and implements has fallen dramatically. AGCO, the parent company, reported a 24.8 percent decline in net sales compared to the third quarter of 2023. In the first nine months of 2024, the decline was as high as 17.3 percent. Tractor sales have been particularly affected, falling by eleven percent in North America and six percent in Western Europe.

Although there are currently no short-time working plans, there are rumors about a production stop in January. Fendt managing director Manja Morawitz makes it clear: "We do not have any short-time work. This is not planned for the beginning of next year either." Instead, regular renovation work takes place. Gabriele Formann is demanding an increase in salary: "We cut back during the Corona period. Now it's time for us to get something back. We deserve it!"