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Sector downturn: automotive supplier Brose cuts 2,000 jobs

2019-10-17T09:05:31.356Z

The automotive supplier Brose wants to reduce 2000 jobs in Germany. Above all, employees from the administration are affected.




The Franconian automotive supplier Brose wants to cancel 2000 jobs in Germany in the next three years. The family business from Coburg was responsible for "massive earnings slumps".

Reasons are the declining market in China and the price pressure, but also internal causes. "We want to improve the quality and lower costs in the mid three-digit million range in order to strengthen our competitiveness," announced Brose CEO Kurt Sauernheimer. Most of the job cuts, which are scheduled to be completed by the end of 2022, are attributable to the administration and the plants in Bamberg, Hallstadt, Coburg and Würzburg.

There Brose employs according to earlier data altogether 7400 coworkers. The production of door locks in Wuppertal with 200 employees is to be relocated. Brose employs more than 26,000 people worldwide.

It is also about the reduction of bureaucracy and hierarchies, said Sauernheimer. Brose intended to largely avoid operating layoffs. Only through the savings could Brose create scope for investment in growth.

Already in May, the company had announced an austerity program, but the dimension was so far unclear. In the past year, the turnover had slumped to 6.3 billion euros, for 2019 Brose had planned with 6.2 billion. In the first quarter, sales had shrunk by five percent and the profit had collapsed, it had been called in May. The company did not publish more exact profit figures.

Source: spiegel

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