Grundfos to cut 405 jobs

Company struggling to achieve desired growth

The Danish pump manufacturer Grundfos will be letting go of 405 employees worldwide, of which 133 currently work in Denmark, TV2 reports.

“Grundfos is growing, but not fast enough,” Mads Nipper, the company’s CEO, told TV2.

“Sales don’t meet our ambitions for 2014 and our income has been falling the past years. One of our key values is independence, including financial independence, and we want freedom to finance our growth and make decisions about potential investments without having to borrow money.”

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In stagnation
The pump market went from growing rapidly to almost stagnating following the financial crisis. “If we don’t turn things around, it can erode our financial strength and independence as well as our global competitiveness,” Nipper told TV2.

With a turnover of 23.3 billion kroner last year, Grundfos is in the top 25 of Denmark’s biggest companies.

In the first two quarters of this year the company made a loss of 301 million kroner.