Koblenz-based firm unveils significant redundancies in workforce
Stabilus, an automotive supplier based in Koblenz, has announced a cost-cutting program in response to a challenging market environment. The company, which currently employs around 7,800 people worldwide, is aiming to ensure its long-term competitiveness.
The restructuring costs, estimated at 18 million euros, will primarily affect the regions of Europe, the Middle East, and Africa, as well as the Americas. The company's struggles include weaker demand from major automakers, who are grappling with sales declines, and the impact of U.S. trade policies.
The restructuring costs have led Stabilus to revise its group result downwards to 25 million euros for the current fiscal year. This revised group result is significantly less than analysts had forecast.
As part of the cost-cutting program, Stabilus plans to relocate and consolidate production spaces in the USA, Singapore, and Thailand, as well as office spaces in Germany. These moves are intended to optimise operations and reduce costs.
Unfortunately, the planned changes will result in the elimination of 450 jobs. The affected locations include Germany, the USA, Singapore, and Thailand. The job cuts will primarily affect the regions of Europe, the Middle East, and Africa, as well as the Americas.
Stabilus is still expecting a turnover of around 1.3 billion euros as planned. The company attributes the challenging market environment to weak global growth, persistently rising costs, and structural changes in key markets.
Despite the difficult circumstances, Stabilus remains committed to its employees and customers. The company will work closely with affected employees to provide support during this transition period.
In conclusion, Stabilus's cost-cutting program is a necessary step towards ensuring the company's long-term competitiveness in a challenging market environment. The company will continue to focus on delivering high-quality products and services to its customers, while also making difficult but necessary decisions to secure its future.
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