The automation specialist Festo plans to cut around 1,300 jobs in Germany. The company is responding to weaker markets, increased competition from Asia, and geopolitical crises. Furthermore, the current economic downturn is significantly impacting its business operations. In 2025, revenue fell by 3.7 percent to approximately 3.33 billion euros. Consequently, uncertainty is growing for the company’s roughly 8,200 employees in Germany. (t-online: 09.05.26)
Festo Aims to Cut Costs and Streamline Structures
The company is launching a global transformation program to boost growth and efficiency. To this end, its organizational structure in Germany is to be streamlined. Furthermore, the group intends to create financial headroom for investments.
The job cuts affect various departments; however, concrete details have not yet been finalized. Consequently, the company and the works council are currently negotiating a socially responsible implementation plan.
Union Sharply Criticizes Job Cuts
IG Metall has responded with strong criticism. Union official Max Czipf from Esslingen stated: “This caught us—and the employees—completely off guard.” Furthermore, the sheer scale of the planned measures is causing considerable unease throughout the region.
The union considers this move to be misguided, viewing it as a threat to the industrial base. Czipf therefore issued a warning: “Anyone who cuts jobs during this economic crisis bears the responsibility for the resulting damage to our industrial sector.”
Revenue Declines for Three Consecutive Years
At the end of 2025, Festo employed approximately 20,600 people worldwide—a figure consistent with the previous year’s headcount. Of these employees, roughly 8,200 were based in Germany.
Despite the stable workforce numbers, the company’s revenue performance has deteriorated. In 2022, the group generated revenue of approximately 3.81 billion euros; by 2025, however, this figure had dropped to just 3.33 billion euros.
Automation Remains at the Core of the Business
Festo supplies technology for industrial control and automation. This includes pneumatic devices, software, and AI solutions. Furthermore, the company serves sectors such as the food industry, the automotive industry, and medical technology.
Alongside industrial automation, technical education plays a significant role. The group is also working on bioreactors for sustainable industrial applications. However, the planned job cuts underscore the severity of the current industrial climate.