Oechsler Group announces group restructuring with centralised production and management
February 20, 2024
The Oechsler Group, headquartered in Ansbach, Germany, has announced it is reorganising its group structure into three business units with a central production responsibility. Under the internally named BE:FOCUSED programme, Oechsler is aiming to streamline structures, simplify the organisation, and centralise operations.
It was stated that evolving demands in tasks and job roles will result in the creation of new positions as well as job reductions. Globally, approximately 220 positions are impacted by the job cuts, with around 135 in Germany.
A structure with three divisions and centralised production
The new corporate structure will focus on three business units (BU) aligning with the company’s strategic market opportunities: Mobility, Innovative Solutions, and Health. Oechsler has decided to discontinue its Sporting Goods business and will only engage in sales in China in this sector if favourable opportunities arise. China will serve as a supplier base for multinational clients in the region. Enhanced collaboration with Chinese toolmakers and utilising their production capacities will enhance efficiency and optimise the product range for customers. Additionally, adjustments are expected in the realm of Additive Manufacturing, it was stated.
Oechsler will centralise worldwide production and its management in one location. The plants within the global group will focus on enhancing production efficiency. Sales responsibilities for regions and countries where Oechsler operates will now be coordinated centrally at the company’s headquarters in Ansbach, rather than being managed locally at the plants. The three German locations of Oechsler will reportedly continue to play a significant role.
“With BE:FOCUSED, we are launching an extensive investment programme for our successful future. Over the past few months, we have analysed very intensively how we can return to a profitable growth path in the long term. We too have been navigating increasingly stormy waters for several years due to changing market conditions, geopolitical changes and increased competitive pressure from our customers. For this reason, we will reorganise ourselves and set the right course again with BE:FOCUSED,” stated Karl Ostler, CEO of Oechsler AG.
“We understand that ultimately, it’s about people and not just ‘jobs.’ Therefore, we will proceed with caution,” added Ostler. “Unfortunately, some colleagues will have to leave the company. We shared our plans with the General Works Council early on and in a transparent manner. I want to express my gratitude to our works council members for their positive discussions. They have passionately represented our employees’ interests and acknowledged the necessity for action. This has allowed us to achieve an agreement and promptly provide clarity for our colleagues.”
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