Heidelberg to reduce headcount at biggest site

Heidelberg aims to save more than EUR 100-m by reducing the size of the workforce at its biggest site in Germany by 11.25%, or 450 roles. The plans were announced 9 December, and similar measures are likely at other facilities.

Wiesloch-Walldorf, located to the south of Heidelberg, is home to printing press manufacturing, small parts and electronics production, R&D, and central administration and service management. Heidelberg describes it as “the largest and most modern printing press factory in the world”.

Around 4,000 people currently work at the campus, also the location of Heidelberg’s Print Media Center customer demonstration facility.

As part of the growth strategy being implemented by new CEO Jürgen Otto, who said Heidelberg’s personnel costs were too high soon after taking over the top job – 450 jobs will go via “socially responsible reduction” including early retirement. The plans have been agreed by the works council and trade union IG Metall and include a guaranteed minimum workforce at the site of 3,500 until the end of 2028.

Heidelberg expects to make personnel cost savings of more than EUR 100-m over three years as a result, but will also book an exceptional charge of €30m in its current financial year due to the measures. The reduction in roles is scheduled to be completed by the end of March 2028, but could happen faster than that. The measures include manufacturing jobs as well as admin and management positions.

Otto said: “The future plan for the Wiesloch-Walldorf site is an important step for Heidelberg in laying the foundations for future growth within the group.”

He said that as well as reducing costs, the agreement would also “create space for important investments”. “We are convinced that we will be able to manufacture further industrial and highly complex products at the Wiesloch-Walldorf site, including for other industries,” he added.

Otto believes the growth plans can bring in EUR 300-m in additional sales by its 2028/29 financial year.

“Heidelberg has enormous expertise and potential. We are also demonstrating this with the future plan. We remain an attractive employer, also for young people, and a driver of innovation beyond the printing industry,” he added.

The Wiesloch-Walldorf site is some 840,000-sqm in total. Back in 2020, Heidelberg sold around 130,000-sqm to specialist developer VGP Group, to create a new industrial and commercial park. Heidelberg occupies more than 600,000-sqm of the site currently. 

Heidelberg said the headcount reduction would serve as a “a pilot” for other sites in Germany.

The group’s other facilities are: Amstetten, home to its foundry; Brandenberg, which makes small hardware parts; Heidelberg Postpress in Ludwigsburg where folders and mailing systems are made; the Gallus site at Langgöns-Oberkleen; flexo web carton converting at Weiden in der Oberpfalz; workflow and CTP systems development in Kiel.

(Source: PrintWeek.com)