The KION Group, when announcing its preliminary full year financial results for 2024, has signalled it will reduce the size of its workforce this year under an “efficiency program”.

KION reports a 0.6% increase in revenue year-on-year to EUR11.5 billion (USD11.9 billion), against 2023 revenue of EUR11.4 billion (USD11.8 billion). Q4 revenue dipped 0.6% to EUR3.07 billion (USD3.18 billion) in 2024, against Q4 2023 revenue of EUR3.09 billion (USD3.2 billion).

CEO Rob Smith says the Executive Board has resolved to introduce the efficiency program “to maintain headroom for future investment”.

“KION is at a pivotal moment in its history,” Smith adds. “To further drive our development of solutions…to cover future requirements from our customers, we will develop an even more resilient and agile company.” 

With a target of achieving sustainable cost savings of EUR140 million to EUR160 million annually from 2026, KION says the efficiency program is necessary to address macroeconomic developments.

“European economies are struggling to gain momentum,” KION states. “This affects key customer industries in the Industrial Trucks & Services segment, where Chinese competitors have been improving their market position in the aftermaths of the recent pandemics. 

“While internal programs to continuously improve product, production and services costs were already up and running throughout 2024 and will continue, further structural measures will address a more efficient setup for KION in Europe. 

“This is expected to have an impact on personnel requirements subject to consultations with the respective employee representative bodies as required by local laws.”

KION Group chief financial officer Christian Harm adds: “In order to maintain headroom for investments ensuring our future, to further strengthen our competitiveness and our resilience, we must manage our cost base. This requires structural and sustainable measures".