German PV manufacturer Diehl Controls cuts 50 jobs

International New Energy Network News: Photovoltaic manufacturer Diehl Controls plans to lay off 50 employees at its manufacturing plant in Wangen, Germany. The works council and the union have reached an agreement on the employees' severance pay.

According to German media Schwabische Zeitung, Diehl Controls will lay off 50 employees at its manufacturing plant in Wangen in southeastern Germany. The works council and the IGMetall union have reached an agreement on the employees' severance pay. The agreement appears to have been signed on Tuesday, and employees have been informed of the company's decision. At present, these employees may be transferred to a so-called transfer company, which will be established on November 1 this year. The laid-off employees will continue to work in the transfer company for one year and receive 80% of their previous net salary. In addition, the company will also pay severance pay, and some old employees will retire.

Diehl Controls had been trying to get rid of the falling demand. Since March this year, the temporary contracts of part-time employees have not been renewed. In addition, flexible working hours have been implemented. According to reports, Diehl Controls will now focus on two key areas in its three major manufacturing centers. Therefore, these 50 employees will have to be laid off.

Earlier this year, management company DiehlAko handed over the development, sales and service of the photovoltaic inverter business unit to Munich subsidiary Mutares. Dieter Neugebauer, CEO of Diehl Controls, told the media that this was the right move. He added, however, that we did find that we could not complete a big turnaround quickly enough.

Despite this, Diehl Controls still considers the company to be in a "financially stable" position. The company is counting on growth in the energy management business in the coming years. After the layoffs, Diehl Controls has about 500 employees at its Wangen plant.