MAN Energy plans to stop steam turbine production in Hamburg and close its production facility in Berlin. Credit: Pattilord247 / Wiki Commons.

Germany-based propulsion and machinery company MAN Energy Solutions has announced a comprehensive programme, which is expected to result in the loss of up to 3,000 jobs in Germany and 950 abroad.

The company plans to carry out the reduction in the workforce in a socially responsible way. The executive board has initiated discussions with the works council with regards to the programme and its effects on employees.

MAN Energy Solutions human resources board member Martin Rosik said: “In the light of the effects the Covid-19 pandemic has on our target markets, we must act fast.

“Our focus is on structural improvement and on reaching the cost-down target. We will negotiate the feasible options to get there with the employee representatives in a very timely manner.”

As part of the comprehensive programme, the company also plans to cut its costs by €450m and increase its operational flexibility to achieve an operating margin of 9% and improve the company’s cash and liquidity position by 2023.

Furthermore, MAN Energy intends to stop steam turbine production in Hamburg and is also considering the closure of its production facility in Berlin. Production currently conducted here will be relocated to another site.

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An additional focus of the programme will be on reducing the cost of materials and equipment, service network optimisation and streamlining the product range.

MAN Energy Solutions CEO Dr Uwe Lauber said: “Some of the company’s key areas of business such as the cruise ship business have been directly affected by the economic impact of the Covid-19 pandemic and we do not expect to see a recovery to pre-crisis levels until 2023.

“The programme is designed to address these negative market influences and make lasting improvements to MAN Energy Solutions’ ability to respond to market fluctuations.”