Danfoss announces layoffs post-profit drop

Danfoss is experiencing a decrease in demand in core markets in the first half of 2024, leading to a decline in both revenue and earnings compared to the previous year, as reported in their latest financial results. The company earned 291 million euros, a 28 percent decrease from the same period in 2023. Revenue fell by nine percent to just over five billion euros. The drop in demand is observed in end markets such as agricultural machinery, construction, and road building. Despite the current challenges, CEO Kim Fausing emphasizes maintaining the long-term growth strategy. Danfoss, specializing in mechanical and electronic components for the energy sector, is restructuring its business operations, which will result in staff layoffs, although the exact number of job cuts has not been disclosed. Fausing discusses further decentralization and a simplified organization for faster decision-making. Specifics regarding the impact on the company’s headquarters and staff numbers remain undisclosed at this point.