Elko König expects up to 28 job cuts in August

Elko König, an engine manufacturer in Rankweil, has registered 32 of its 180 employees for dismissal at the end of August, with between 25 and 28 expected to lose their jobs, ORF reported, citing the Vorarlberger Nachrichten.

The figure is lower than feared a month ago. In July, the company submitted an early-warning notification to the Public Employment Service Austria for its entire workforce. Elko König said at the time that the notification was a precautionary measure. The employment service said such broad notifications are customary when larger rounds of dismissals are being considered.

The number of job cuts was expected to depend partly on negotiations with a leading industrial partner from India, which has already signed a letter of intent for a partnership. However, the cooperation has still not been approved. Managing director Dieter Angerer told the newspaper that the talks were difficult but ongoing and required considerable time.

The company is working to retain as many employees as possible and find solutions for them, Angerer said. Works council chairman Thomas Jutz confirmed the discussions and efforts to establish a social plan, including support for employees facing particular hardship.

Angerer said the company remained in a difficult position because of high production costs in Europe and Austria, the transformation of the engine industry and various global crises. Elko König is currently moving its main plant from Carl-König-Platz in Rankweil to the Kunert site, where all production is to be based in future.

The company underwent restructuring proceedings in 2024. A separate company was then set up to continue operations in the loss-making cylinder division, but it has since ended its activities. Around 70 employees lost their jobs as a result, while a small number were expected to move to the main operation.