Type
Closure
Country
Germany
Region
Sachsen; Dresden; Bautzen
Location of affected unit(s)
Leppersdorf
Sector
Manufacturing
(10 - 11) Manufacture of food and beverage
10.5 - Manufacture of dairy products and edible ice
10.51 - Manufacture of dairy products

160 jobs
Number of planned job losses
Job loss
Announcement Date
6 October 2026
Employment effect (start)
31 December 2026
Foreseen end date
31 December 2026

Description

Theo Müller, a dairy and food products company, based out of Luxembourg, announced the closure a production line that belongs to its subsudiary Sachsenmilch. The closures will result in about 160 job cuts at the Sachsenmilch cheese factory in Leppersdorf, Saxony. The site in Leppersdorf is supposed to close by the end of 2026.

The company was found to have an unsustainable cost structure combined with a high need for investment. Therefore, management deems the site non-viable in the long term. Moreover, a change in consumers' eating habits has led to a decline in demand for the cheese products manufactured in Leppersdorf.

Management and works council are negotiating social solutions such as internal redeployment, contract adjustments and training opportunities. The closure only affects the site in Leppersdorf. Management has announced that milk suppliers should not be affected by the closure in Leppersdorf, as the volume of milk purchased can be distributed among other buyers.

The works council has been consulted throughout the process.

Theo Müller has around 35,000 employees across 22 different locations in Europe. The Sachsenmilch cheese factory in Leppersdorf is among multiple production lines that are operated by Theo Müller in Leppersdorf. Theo Müller has 3,000 employees woking for its subsidiary Sachsenmilch in Leppersdorf.


Citation

Eurofound (2026), Theo Müller, Closure in Germany, factsheet number 301315, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/301315.