The French household appliance group SEB has announced a comprehensive cost-cutting program that will hit the long-established German brand WMF particularly hard. WMF’s parent company plans to eliminate up to 2,100 jobs across Europe, including up to 600 in Germany, Austria, and Switzerland. The closure of WMF plants in Riedlingen, Hayingen, and Diez is also planned, potentially eliminating entire production structures. The measures are driven by increasing competitive pressure, especially from Asia, and the goal of saving around €200 million by the end of 2027. The consequences range from short-time work and the closure of entire factories to the threat of layoffs, leaving many employees facing an uncertain future. (bild: 26.02.26)
WMF plants in focus of cost-cutting program
SEB manages its international brands from Écully near Lyon, but German manufacturers remain among the most important components of the group. The planned factory closures therefore represent a significant blow to several regions. While the production of coffee machines will not be affected initially, according to the works council, short-time work has been in effect at WMF’s headquarters in Geislingen for two weeks. This is increasing the pressure on the workforce, as concrete decisions are still pending.
The company justifies the restructuring with declining competitiveness and rising costs. Asian manufacturers are increasingly putting European suppliers under price pressure, which is why SEB intends to realign its structures. Administration, sales, and marketing are also to be streamlined so that the company can return to profitable growth. However, the effects extend beyond individual plants, as internal processes and branch structures are also impacted.
Talks with employee representatives are underway.
Initial talks with employee representatives began in Germany on Wednesday. These negotiations are considered crucial because they will play a decisive role in determining potential social plans and the extent of layoffs. At the same time, it remains unclear how severely other locations will be affected in the long term. While the exemption for coffee machine production currently protects some jobs, the ongoing short-time work scheme continues to create uncertainty.
Of approximately 4,400 jobs in Germany, Austria, and Switzerland, up to 600 could be lost. A further 800 or so positions are to be eliminated at other European locations. This will significantly alter the company’s structure, while employees await clear prospects. For many regions, much depends on the solutions found in the coming months.
Profit Decline Increases Pressure on the Group
SEB employs around 32,000 people worldwide and is one of the leading manufacturers of household appliances. Nevertheless, the company had to revise its targets twice in 2025 because business performed weaker than expected. Earnings before interest and taxes ultimately fell by 25 percent to €601 million. However, investors reacted positively to the cost-cutting plans, which is why the share price rose by around 11 percent on Wednesday.
This development illustrates the conflict between economic stabilization and social consequences. While investors view the cost-cutting measures as necessary, many employees are increasingly worried about their long-term prospects. At the same time, the restructuring underscores the significant impact that international competition now has on European industrial companies.
A Traditional Brand with a Long History Under Pressure
The WMF brand looks back on more than 170 years of company history. As early as 1853, Daniel Straub and the Schweizer brothers founded a metal goods factory in Geislingen, which later became the Württembergische Metallwarenfabrik (Württemberg Metal Goods Factory). Over the decades, the company evolved from metal processing to an internationally renowned supplier of kitchen products, professional coffee machines, and hotel equipment. According to the company, more than 100 million people worldwide use the manufacturer’s products every day.
This is precisely why the current restructuring carries such symbolic weight, as an established brand enters a phase of profound change. While the corporation is focusing on cost-cutting, employees are hoping for solutions that will secure as many jobs as possible. The upcoming negotiations will therefore be crucial in determining the final extent of the cuts.