Battery manufacturer Varta is cutting 150 jobs at its Nördlingen site. The affected subsidiary is Micro Production, whose employees received the news before Christmas. Following announcements in recent weeks, the layoffs have now been issued. The reason is a significant decline in sales figures and revised customer forecasts. This has led to a drop in revenue and production volume at a plant that primarily manufactures small lithium-ion cells for wearables. The ongoing restructuring is thus becoming even more difficult, while employees face a further blow in an already strained situation. (schwaebische: 27.03.26)
Sales Weakness Hits Core Business
Varta justifies the move with a noticeable downturn in the market. A spokesperson explained that the reasons are “significantly lower sales volumes and shifted customer forecasts, which have led to a decline in revenue and production volume.” Therefore, the company is restructuring its workforce as demand weakens in key segments. The job cuts are thus not an isolated measure, but a direct response to a challenging business environment.
In Nördlingen, the company primarily produces small lithium-ion cells for devices worn directly on the body, such as fitness watches, earbuds, and glasses with displays. This business segment was long considered a key component of the group, but it is now losing momentum. This is particularly critical for the site, as declining orders directly impact production.
Restructuring Remains a Herculean Task Despite New Funding
The current cutbacks are also part of a broader context. Varta already faced a severe crisis in 2022 and had to initiate a comprehensive restructuring process. This ultimately led to delisting from the stock exchange and the loss of shares for many small shareholders. The former stock market darling thus became a restructuring case. The latest job cuts demonstrate that the restructuring continues to demand operational sacrifices.
Fresh capital was later provided by Porsche and the Austrian entrepreneur Michael Tojner, who has been the majority shareholder for years. This funding was a crucial prerequisite for the banks to also provide the promised loans. Nevertheless, the restructuring is not yet complete, but is scheduled to continue until the end of 2027. Varta aims to return to profitability during this period, particularly in microbatteries and energy storage systems. Whether this succeeds, however, depends largely on whether sales recover.
Social plan to mitigate consequences
According to the company, the measure is being implemented in close consultation with the works council. Furthermore, a voluntary severance program and a social plan are intended to limit the impact on those affected. Varta stated: “Our goal is to find fair and socially responsible solutions for all affected employees.” This statement marks the official commitment, but it does not change the economic severity of the cuts.
According to its own figures, Varta currently employs around 4,200 people. Against this backdrop, 150 job cuts within the group as a whole seem limited, but for Nördlingen, they represent a clear warning signal. The location remains important, while the group is simultaneously adjusting its capacities to the weaker demand. This is precisely where the real significance lies: Varta is no longer cutting costs proactively, but is reacting to persistent market weakness in the midst of the ongoing crisis.