German automotive supplier Webasto announces job cuts
German automotive supplier Webasto is planning massive job cuts, with chief executive Holger Engelmann saying on Thursday that the company's 2023 annual result was "disappointing and is forcing us to act."
Although turnover rose slightly last year to €4.6 billion ($5.03 billion), operating profit before interest and taxes (EBIT) was only just in positive territory at €20 million.
"We have therefore launched a broad-based programme to sustainably improve our company's results and secure Webasto's future," Engelmann said from the company's headquarters in Stockdorf near Munich. "Job cuts in the double-digit percentage range are probably unavoidable." Webasto currently employs 16,600 people worldwide.
The management board will inform the employees about targets and decisions in a few weeks, he added.
The family-owned company had already adjusted its capacities, decided on a worldwide hiring freeze in the autumn and sold the majority of its charging solutions business at the beginning of this year.
Webasto is well positioned with its traditional business with panoramic roofs and sunroofs for electromobility, the chief executive stressed.
However, the general conditions for automotive suppliers have continued to deteriorate: "Significant fluctuations in demand, increased cost pressure, inflationary effects, disruptions in the supply chain and weak development in many markets are reflected in our figures," said Engelmann.
The company is bracing itself for the fact that many external factors will continue to hamper its business development.
