Playmobil shuts down German factory after decades of local production

Playmobil has announced the permanent end of its production in Germany. The decision will lead to the closure of its Dietenhofen plant by June 30, 2026, affecting around 350 jobs. Workers were taken by surprise when the news was revealed in February. The company pointed to high labour and energy costs in Germany as the main reason for the move. To cut expenses and stabilise operations, Playmobil will shift all figurine manufacturing to its existing sites in Malta and the Czech Republic.

An agreement on severance packages has been reached with employee representatives. Staff at the Dietenhofen plant will continue to receive pay until one week before the facility officially closes.

Despite the shutdown, Playmobil plans to keep key functions in Germany. Product development, administration, marketing, sales, and logistics will remain based in the country. The closure marks the end of an era for German manufacturing at Playmobil. By centralising production abroad, the company aims to return to sustainable growth. The loss of 350 jobs will reshape its operations in the region.