Tariff agreement: KUKA strengthens Augsburg location with investments and excludes lay-offs for operational reasons
The agreement includes major investments worth several tens of millions of euros in automated production and logistics within the robotics division, as well as in future technologies and strengthened research and development. It also commits to no operational layoffs until July 2029, ensuring Augsburg remains KUKA’s main production site in Europe. At the same time, agreed wage increases and certain employee benefits will be delayed or temporarily reduced.
Commenting on the agreement, KUKA Group CEO Christoph Schell described it as a key milestone in positioning KUKA as a globally sustainable company, particularly at its home base in Augsburg. He noted that constructive collaboration with social partners enabled a balanced solution that secures long-term investment at the site. Going forward, KUKA will place greater emphasis on aligning its structures and internal policies with a market-driven and innovation-focused corporate culture.
KUKA Group CEO Christoph Schell
In addition, emerging technologies such as intent-based robotics will become a key focus. This approach allows a desired outcome—such as assembling a product or picking components—to be defined, enabling one or more AI-powered robots to independently plan and execute the required tasks. Previously, each individual step had to be manually programmed to achieve these processes.
Carola Leitmeir, who led the negotiations for the KUKA works council, confirms: "We are aware that the cuts will have a noticeable impact on employees due to the postponement and elimination of collectively agreed benefits. Nevertheless, this agreement sends a strong signal for the future viability of the Augsburg location. We have thus succeeded in limiting the number of job cuts. In addition, the exclusion of lay-offs for operational reasons means that this will now be done in a socially acceptable manner. The company's assur-ance that non-unionized employees and managing directors will also make the same percentage contribution was a basic requirement for us."
Key elements of the agreement
KUKA is deploying advanced automated manufacturing and logistics systems at its Augsburg facility, securing the site’s role as the Group’s primary European production hub for its core robotics product lines. Key strategic development initiatives will also be based in Augsburg, strengthening research and development capabilities over the long term and reinforcing the site’s position as a central innovation hub within the KUKA Group.
The company is also placing strong emphasis on building expertise in future-focused areas. Investments are being made to upskill employees in fields such as autonomous mobile robots (AMRs), software, and artificial intelligence, alongside the introduction of more flexible working time and remuneration models. Training programs are being expanded, and the Fit4Growth efficiency initiative continues to be rolled out. Any workforce reductions will be managed in a socially responsible manner, with KUKA committing to no operational redundancies until July 31, 2029. Furthermore, no additional relocations of functions that would result in further job losses are planned.