Five facts on how tariffs led to 80 job cuts at K.R. Pfiffner in Switzerland

When Swiss machine maker K.R. Pfiffner told workers it would lay off 80 of its 105 staff (over 76% workforce), the shock spread far beyond its borders. The cuts, driven by U.S. tariffs and a sharp fall in Europe’s car market, show how global politics can hit even the most skilled industrial towns.

For 59-year-old Norbert Steuer, who has spent more than three decades at the firm, the news felt “like a bomb went off.” His story, reported by Reuters, now reflects the growing strain facing factories across Europe.

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Five facts to know:

1. Why K.R. Pfiffner is cutting 80 jobs out of 105

K.R. Pfiffner, a Swiss precision machine maker, will let go 80 workers, including long-time staff. Many of them built machines used by Mercedes-Benz and Bosch. Workers say the shock was sudden and painful.

2. U.S. tariffs destroyed a key market

After President Donald Trump announced new tariffs in August, Pfiffner’s U.S. orders fell fast. The firm depended on American buyers for big, high-cost machines. Managers say the tariffs pushed the company into crisis.

3. A weak car market in Europe made things worse

Germany and China, two major car markets, are slowing down. Many of Pfiffner’s customers are German industrial firms. When car sales fall, suppliers delay buying new machines. This cut demand across Europe.

4. Job losses are rising across Switzerland and Germany

Switzerland’s jobless rate grew from under 2% in early 2023 to 3% now. Industry group Swissmem warns that 30,000 engineering jobs may disappear by 2026 if tariffs stay. German industrial firms cut 114,000 jobs in one year, four times more than the year before.

5. Industry leaders say this crisis is historic

Companies like Bosch, Mercedes-Benz, and Continental are cutting thousands of jobs. Business leaders say the scale is unlike anything they remember. “It’s something we’ve not seen in our lifetimes,” said Volker Treier of the German Chambers of Industry and Commerce.