The Krone Group, a major German manufacturer of trailers and agricultural machinery based in Spelle, Lower Saxony, is implementing significant cost-cutting measures in response to a worsening economic climate, prompting concerns about the wider regional impact. Bernard Krone, the fourth-generation family leader and Chairman of the Supervisory Board, confirmed substantial reductions in temporary staffing, revealing a decrease of over 450 temporary employees in the commercial vehicles and agricultural technology divisions alone compared to 2023.
Krone stated the necessity of “difficult decisions” in challenging times, signaling a stark shift from the company’s recent history. Beyond the reduction of temporary workers, the group is meticulously evaluating the potential for extending contracts for fixed-term employees, students and apprentices, underscoring the fragility of the current situation. While mass layoffs are not currently planned, Krone left the door open for further, potentially more drastic options if the economic situation deteriorates further in the coming months, a move likely to cause “culture shock” within the local community.
Krone attributes the pressures facing the company to a complex web of factors including intensifying competition from China, the ongoing war in Ukraine, disruptive US tariffs and what he describes as excessive bureaucracy and “regulation mania” originating from the European Union. These criticisms reflect a growing sentiment among some German industrialists who argue that EU regulations are stifling growth and competitiveness.
While dismissing the prospect of relocating the company’s headquarters abroad as unlikely under current circumstances, Krone’s public commentary highlights the increasing vulnerability of established German industrial powerhouses in an era of global economic uncertainty. The Krone Group, which generated over €3 billion in revenue in the 2023/2024 fiscal year and employs over 10,000 people worldwide, represents a significant pillar of the regional economy. The current cost-cutting strategy and the acknowledgement of potential for further action reveal the precarious position facing many manufacturers navigating an increasingly volatile global landscape. The long-term implications for employment and regional prosperity remain a source of anxiety within the Emsland area.