DEUTZ plans job cuts amid weakness in small engine business

Engine manufacturer DEUTZ is planning significant job cuts, primarily affecting its small engine business. Reports indicate that up to 400 positions could be eliminated over the next two years, representing approximately 15 percent of the company’s roughly 2,600 local employees in Cologne. Some of these cuts, involving about 100 positions, may already be underway.

The downsizing is driven by weak demand and intense competition in the small diesel engine segment, used in applications such as tractors and forklifts. While the small engine division saw modest revenue growth in the first half of 2026, the company as a whole has experienced growth in other areas, including service, energy supply, and defense.

DEUTZ is currently undergoing a strategic restructuring to reduce its dependence on traditional combustion engines. This includes expansion into the defense sector, highlighted by the 1.6 billion euro acquisition of military vehicle manufacturer FFG. The company has declined to comment on the specific workforce reduction plans.