Festo Announces Plan to Cut Around 1,300 Jobs in Germany Amid Market Challenges

Festo, the German industrial plant manufacturer based in Esslingen, has announced plans to reduce its workforce by approximately 1,300 jobs across Germany. This decision, revealed on May 8, 2026, is part of a global transformation program initiated by the family-owned company to address ongoing market changes, increased competition from Asia, and geopolitical crises.

The job cuts are intended to help Festo save around 200 million euros annually worldwide, enhancing growth and efficiency amid financial pressures. Despite the reductions, Festo's CEO Thomas Böck confirmed that all German production sites will remain operational. Negotiations with the works council are ongoing to ensure the job cuts are handled responsibly and with social considerations.

The announcement elicited criticism from the IG Metall union. Spokesperson Max Czipf described the layoffs as unexpected and voiced concerns about their potential adverse effects on the regional economy and job market.

Festo’s financial performance has been declining, with a 3.7% drop in revenue in 2025—the third consecutive year of decrease—resulting in approximately 3.33 billion euros in revenue. At the end of 2025, the company employed around 20,600 people globally, with about 8,200 located in Germany.