Henkel's German workforce hit by job cuts

By Katie Bird

- Last updated on GMT

Related tags: Germany

Henkel will be significantly cutting its German workforce within
the next two and half years as part of global programme to increase
profitability.

The company announced earlier this week that 1000 of the program's predicted 3000 job losses will occur in Germany, although no particular division will be affected. In total, approximately a tenth of the company's global workforce will be affected by the cuts, which were initially announced earlier this year. Back in February, the company cited changes in the market and increasing costs as reasons behind the cuts. "With this step we are responding early and responsibly to the ever faster changes in our markets,"​ said chairman of Henkel's management board Ulrich Lehner. The initiative is designed to bring annual savings of approximately €150m from 2011. The job losses, in Germany and the rest of the world, will not be focused on any particular division or job function, spokesman for Henkel Wulf Klüppelholz told CosmeticsDesign. Concentrating detergent in Dusseldorf ​In addition, the company announced it will be closing its detergent production facility in Genthin in Eastern Germany and will be transferring it to Dusseldorf in an attempt to centralize its detergent business. Approximately 240 employees currently work in the plant in Genthin, 50 of whom will stay on and continue the plant's non-detergent activities, said Klüppelholz. The future of the remaining employees remains unclear although Klüppelholz did say that the company would be investigating relocation possibilities for the workforce. Sales of Polish soap plant ​This week has also seen an announcement from an India-based personal care company that it has bought a Polish soap manufacturing facility from Henkel. The Mumbai-based company VVF Ltd is a leading contract manufacturer of personal care products in India as well as providing oleochemicals to the industry. For VVF, the acquisition is a way of targeting the European market and expanding its global reach.

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