Order of the Missing Russia
Linde division plans massive job cuts
7/16/2022 3:52 PM
Linde’s plant engineering department is losing billions in orders because of sanctions against Russia. The result: the space in Pulach is no longer fully utilized. Employees should tremble. According to insiders, every fourth job is in danger.
Linde’s plant construction division is at risk of job cuts after withdrawing from Russia. As a result of sanctions against Vladimir Putin’s government, the American-German conglomerate largely lost lucrative orders for gas liquefaction and processing plants, mainly from the state-owned Gazprom company.
The board member responsible for the business, Jurgen Nowicki, spoke at a work meeting via video conference about the “necessary structural measures at the Pulach site” and drastic staff reductions, as seen from a letter to the workforce from the Council which is available to Reuters. With orders from Russia, the site outside Munich must have been busy for years.
Several company insiders said the plan is to cut 400 to 500 jobs. A spokesperson declined to comment. The plant in Linde Pulach employs a good 2,000 people in construction. Russia’s orders accounted for two-thirds of the division’s order backlog.
Works Council is exploring options
According to Nowicki, the board believes that a third is irrevocably lost. IG Metal Union puts a question mark behind it: “We are convinced that this is just a valley of tears that must end after two to three years,” IG Metal’s Linde representative, Danielle Friesia, told Reuters on Friday. “Pulch space must be preserved in its breadth and depth.”
Works council chief Hans-Peter Caballo said Linde was pushing for the fastest possible downsizing. “But this is a completely wrong approach, a helpless attempt.” Linde is at risk of loss of information, while personnel costs are only a fraction of the total cost. Linde is in a better position than any other plant manufacturer to switch from gas to hydrogen as an energy source. The business is profitable, but without Russia it will not bring the necessary return on sales. “It will be like this for the next three to four years. That makes the management nervous.” The Working Council wants to show job cuts options.
Linde’s stock temporarily rose 2.33 percent to 274.55 euros on the Tradegate trading platform after hours.
