CLAAS is cutting 1,000 jobs in Germany amid a prolonged downturn in the agricultural sector

The job cuts will affect CLAAS’s main plant in Harsewinkel fr om August 18 to 29, as well as the facility in Paderborn in September. The company is introducing a Kurzarbeit scheme — a form of short-time work wh ere employees’ working hours and wages are temporarily reduced. The income loss is partially offset by government subsidies for short-time workers. Employers are required to submit an application to the employment agency to implement this measure.

This marks the third wave of temporary reductions at CLAAS within the past 12 months, with similar actions taken in January and September 2024.

The company attributes the cuts to an unfavorable macroeconomic environment, including high interest rates and geopolitical instability. These factors are discouraging investments by farmers and contractors, directly impacting demand for agricultural machinery.

CLAAS is not the only manufacturer forced to take such measures. According to the industry association VDMA, agricultural machinery production in Germany dropped by nearly 7% during the first 10 months of 2024. The full-year forecast predicts an 8% decline, with a further 2% decrease expected in 2025. Other manufacturers such as Fendt, Krone, and Lemken have also announced capacity reductions.

Despite the challenges, CLAAS ended the 2024 financial year in profit. As of September 30, 2024, the company reported revenues of €5 billion — a 19% decrease compared to the previous year. Net profit fell to €253 million from €347 million in 2023.

Globally, CLAAS employs around 12,000 people, a significant portion of whom are based in Germany.