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Heavy truck manufacturer MAN announces plans to cut 9,500 jobs

2020-09-11T10:50:45.865Z


The Volkswagen group subsidiary plans to separate a quarter of its workforce as part of a global restructuring plan.


The German heavy-duty manufacturer MAN, a subsidiary of the Volkswagen group, announced on Friday that it planned to cut 9,500 jobs, or a quarter of its workforce worldwide, as part of a global restructuring plan.

The management board "

decided on a major reorientation

", including savings of 1.8 billion euros, including "

the elimination of up to 9,500 jobs in Germany, Austria and throughout the world, in all sectors of activity of the group

”, detailed the company in a press release.

Read also: The ID3, a key issue in the conversion of Volkswagen to electric

Three factories, in Steyr in Austria as well as in Plauen and Wittlich in Germany, could be closed, adds MAN.

"

MAN's management board will quickly start negotiations with employee representatives

" on the restructuring, the manufacturer said in a statement.

In the first half of the year, marked by the Covid-19 pandemic which plunged large swathes of the economy into an unprecedented crisis, MAN posted an operating loss of 423 million euros with a drop in turnover by 26% over one year, to 4.7 billion.

In the second quarter in particular, the factories of the manufacturer of buses and trucks had been partly closed.

MAN was already planning a cost-saving plan before Covid-19 to react to a drop in demand which simply worsened with the health crisis.

According to German media, the group had envisaged up to 6,000 job cuts.

Read also: Volkswagen is interested in Eurazeo's share in Europcar

In its 2019 annual report, which does not take the pandemic into account, MAN already forecast a "

drastic

"

drop

in its results, notably as a result of a 10% to 20% melting of the European market.

MAN is 95% owned by Traton, the heavy-duty arm of the Volkswagen group.

Source: lefigaro

All business articles on 2020-09-11

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