Japanese manufacturer Komatsu is cutting nearly a quarter of its workforce at its Hanover plant due to weak demand for construction machinery. The decision affects 235 employees out of nearly 1,000 current workers.
Komatsu Germany’s Managing Director, Ingo Büscher, confirmed to the German Press Agency that the company will reduce its workforce in Hanover by the end of the year. “Like the entire construction machinery industry, we are suffering from a sales crisis,” Büscher explained. “Unfortunately, we can no longer avoid job cuts.” For the remaining approximately 750 employees at the site, a future collective agreement ensures protection against operational dismissals until early 2030.
Implementation of workforce reduction
The job reduction plan includes multiple components:
- 78 fixed-term contracts have not been renewed since April 2024
- 50 employees will leave through a voluntary program
- 107 employees will face operational dismissals based on a social plan agreed upon with the works council
The Hanover site, which specializes in manufacturing wheel loaders and mobile excavators, has been operating under reduced hours since October 2023, a measure that ended in September 2024. According to the “Hannoversche Allgemeine” newspaper, sales have recently collapsed dramatically. Komatsu Hanover is expected to deliver only half as many machines in 2024 compared to 2023.
