Restructuring and increased Focus on Digitalisation at The Miele Group

German appliance manufacturer of domestic and commercial appliances Miele has recently announced its intention to cluster its operating business into eight individual units. As a result, around 1070 jobs will be cut worldwide by the end of 2021 and a further 650 jobs are to be eliminated at the Gütersloh washing machine plant by the end of 2025.

The family-run business said the need for “urgent action” was due to far-reaching changes in the marketplace and to changing consumers’ habits to obtain information and place order as a result of digitalisations. Action was also needed because of the increasingly price-aggressive behaviour of Asian corporations. The company stated: “Enforced redundancies are to be avoided wherever possible. In return, it is planned to create around 470 new jobs, for instance in the area of digital competence.”

On the other hand, savings of around 190 million euros per year are expected to create the financial scope for increase in sales power and investments in digital marketing and new areas of business. For instance, in order to continue an expansion of digital marketing and sales expertise, various new competences such as digital marketing, e-commerce and digital analytics are to be merged into the company’s new Digital Hub Marketing & Sales which will be set up in Amsterdam, The Netherlands.