Demag Cranes will cut 750 jobs as part of worldwide restructuring measures.
The multi-million Euro programme will take place during the current financial year in an effort to achieve significant savings in the coming years. The measures were approved by the supervisory board of Demag Cranes AG following proposals by the management board.
"This action has become necessary due to the significant fall in demand for products both in the industrial cranes and port technology segments. As the crane and material handling sectors are affected late in the economic cycle, the Demag Cranes Group is only now feeling the full impact of the global economic and financial crisis with a delay of around six months," said the company.
As a result, group order intake in the second quarter of financial year 2008/2009 was down by more than 40% from the previous year. "As the extent and duration of the crisis still cannot be predicted, these packages of measures will now be implemented to secure the financial stability of the group on the basis of its sound balance sheet. In particular, it is necessary to lower the break-even points in order to improve the group's ability to operate in a highly competitive environment."