The Krone Group, a prominent German manufacturer of commercial vehicles and agricultural machinery based in Spelle, Lower Saxony, is implementing significant personnel cuts in response to a challenging economic climate. Bernard Krone, the group’s chairman and fourth-generation leader of the family-owned enterprise, confirmed a substantial reduction in temporary workers, exceeding 450 since 2023 across both its commercial vehicle and agricultural technology divisions.
Krone addressed the measures to the “Neue Osnabrücker Zeitung”, stating the company is “carefully evaluating” the continuation of fixed-term contracts, student placements and apprenticeships. The remarks signal a shift in strategy as Krone emphasizes a need for resilience, expressing concern about avoiding fates similar to those of other businesses in Northwest Germany that have faced tougher times. While mass layoffs are not presently planned, Krone didn’t rule out further, more drastic cost-cutting options should economic conditions deteriorate further in the coming months. He acknowledged that the severity of the current austerity measures may be unsettling for local employees, marking an atypical approach for the traditionally stable company.
Krone attributed the company’s predicament to a confluence of factors beyond the company’s control. Competition from China, the ongoing war in Ukraine and U.S. tariffs were cited, but crucially, he added a critique of excessive bureaucracy and regulation emanating from the European Union. “A regulative mania of the EU” was his direct assessment, hinting at tensions between the Krone Group’s operational needs and perceived obstacles imposed by European policy.
Despite the current difficulties, Krone dismissed any immediate plans to relocate the company’s headquarters outside of Germany. However, he implied that a significantly worsened business environment would be required to trigger such a decision. The Krone Group, generating over €3 billion in revenue during the 2023/2024 fiscal year and employing over 10,000 people globally, stands as a significant employer in the region and its actions are likely to be closely watched as an indicator of the broader impact of global economic headwinds on German industry. The company’s response also provides a platform for a wider debate concerning the impact of EU regulation and international trade policies on German businesses.
