The consequences of the coronavirus can be felt on a global level. Our suppliers of raw materials in Italy and Spain are particularly affected by the coronavirus. In addition, almost all stores worldwide are closed. As we have already delivered the current spring/summer collection and made precautions with an additional ten million pairs of shoes in our warehouses, we will now close our production sites for two months. We also decided to take this step as a protective measure for our incredibly motivated BIRKENSTOCK employees who always find good and quick solutions – also during these difficult times.
As from the beginning of April, BIRKENSTOCK will suspend its production at all German production sites for an initial period of two months. On account of the compulsory requirements for the protection of the health of all employees as well as considerable disruptions of the supply chain, the production processes can no longer be properly executed.
“With the suspension of production, our company contributes to containing the virus. During this suspension period, we will, however, make intensive preparations for quickly resuming our operation. As we have already almost completely delivered our spring/summer 2020 collection worldwide, we can provide the markets in all countries with our current stock of ten million pairs of shoes as soon as the general situation permits and the stores reopen,” explains Oliver Reichert, CEO of the BIRKENSTOCK Group.
“At the same time, this measure helps us respond to the current difficulties in our supply and logistics chain. On account of the current shutdown in all of Europe, the supply with our raw materials is currently coming to a virtual standstill. Most of our raw materials are delivered from Italy and Spain. Unfortunately, these are the European countries most affected by the pandemic which leads to substantial work loss also on our end. Moreover, the Polish and Czech commuters working in our sites in Görlitz and Bernstadt are restricted in their free movement as a result of the border situation between Poland, the Czech Republic and Germany,” explains Markus Bensberg, CEO BIRKENSTOCK Group.
The employees of the production sites in Saxony, Rhineland-Palatinate and Hesse are affected by the application for short-time work. As per the current state, it is planned that the short-time work will last two months. BIRKENSTOCK will increase the short-time allowance significantly pursuant to a works agreement concluded with the respective works councils, to compensate disadvantages of the employees. Depending on the remaining workload in view of the current situation, other divisions of the company may also be affected by the short-time work. The company will continue to keep a close eye on the developments of the corona pandemic and will purposefully adjust its next steps to all ongoing changes of the situation.
In order to protect its global workforce, BIRKENSTOCK has implemented further steps, for some weeks now, to contain the spread of the virus. Any and all business trips have been canceled as from the start of the corona pandemic to prevent infections. Additionally, internal events requiring attendance of employees were replaced by telephone and video conferences and employees were encouraged to work from home so that physical contacts could be reduced to an absolute minimum.
