Playmobil Drops 'Made in Germany' Label After Abrupt Factory Shutdown

Playmobil shuts down its Dietenhofen factory early, cutting 350 jobs and relocating production to Malta and Czech Republic amid high costs and falling sales.

The toy giant’s decision to halt production at its historic Dietenhofen site caught workers off guard. On June 23, the remaining employees were released — a full week earlier than the official closure date of June 30.

350 Jobs Cut as Production Heads Overseas

The layoffs affect 350 people at the Bavarian facility. Playmobil cited Germany’s unfavorable business climate as the reason: high labor and energy costs, combined with a sharp drop in sales, left the company with no alternative.

From now on, all plastic toy figures will be manufactured exclusively in Malta and the Czech Republic. Other parts of the business — including development, administration, marketing, sales and logistics — will remain at the company’s main headquarters.

Union and Works Council Cry Foul

The sudden termination prompted strong backlash. Works council chairman Michael Ulbrich called it a disaster. “For many employees, their world has collapsed,” he said.

Both the IGBCE union and the local employee representative body sharply criticized management, particularly over how the decision was communicated. Many workers felt blindsided.

A Social Plan Offers a Soft Landing

To ease the fallout, the company and the works council agreed on a social plan. It includes severance payments and transfers to a job-transition agency that will help workers retrain and find new positions.

End of an Iconic Production Line

The closure marks the end of one of Germany’s most well-known toy-manufacturing operations. For decades, the Dietenhofen plant served as the heart of the Playmobil brand. The early production stop effectively concludes a process that becomes official with the factory closure on June 30. The famous “Made in Germany” tag will no longer appear on the company’s core products.