At B&R in Austria

Automation specialist cuts up to 240 jobs

B&R is part of the ABB Group and has invested heavily in recent years.(Bild: Markus Wenzel)

Due to the enormous demand, B&R in Eggelsberg (Upper Austria) even had an additional weekend shift with specially recruited employees until February 2024. Now, like many others, the automation specialist is struggling with falling order numbers. The result: up to 240 jobs will be cut!

"All necessary steps are being examined in order to accelerate innovation and production. The focus is on sales and on perfecting processes and operating procedures," B&R announced in mid-June, while also announcing a cost-cutting program.

Saving pencil in the administration
Since Thursday afternoon, the employees of the automation specialist, which operates from Eggelsberg, have known what this means for them. The company, which is part of the ABB Group, is also making cuts to its workforce. Up to 240 jobs in Austria will be lost in administration.

Social plan negotiated with works council
The reduction in staff is to be completed by the end of the year, it is said. How will this work? B&R is relying on natural fluctuation, retirements, voluntary redundancies and retraining. The company's aim is to have to take as few steps as possible itself. In any case, precautions have been taken: a social plan has been negotiated with employee representatives. There is also the possibility of training within an employment foundation.

In recent years, B&R has invested millions in the expansion of the Eggelsberg site and built a campus there. All signs pointed to growth and demand was booming until the war in Ukraine, rising energy costs, inflation and general uncertainty put a stop to the success story. Most recently, the company employed 2500 people.