German Webasto, which makes its living by making heaters for cars, is now set to embark on a major round of layoffs. Reportedly, this will affect one in six employees.
The German company Webasto is facing such great economic difficulties that it is forced to lay off a significant number of its employees.
The group plans to lay off one in six employees in Germany as part of a larger round of cost-cutting measures. This means that 650 out of 3,700 German employees will be laid off.
"This was a difficult decision, but one that was inevitable," says Jörg Buchheim, CEO of Webasto.
The cuts come after Webasto announced at the end of last year that the company "is facing major financial challenges".
This is what Handelsblatt writes.
The concrete plans for the restructuring are now being presented. The staff reduction will mainly affect the company's administration and development departments.
However, production capacity will also be adjusted to match the lower demand.
The affected departments are primarily located at Webasto's locations in Gilching, Hengersberg, Neubrandenburg and Utting as well as at the headquarters in Stockdorf near Munich.
Webasto is one of the largest suppliers to the automotive industry globally. The company was established in 1901 and specializes in the development of solar panels, heating systems, and battery and charging solutions for vehicles.
The current economic situation forces the company to make these adjustments.
"We will implement the planned personnel measures with the utmost respect for the social security of our employees and in accordance with our corporate culture," says Jörg Buchheim.
The measures are taking place in the wake of the former CEO, Holger Engelmann, leaving the almost 125-year-old family business for a period of time in March.
– The company expects that the entire process of staff reductions will be completed before the end of the year.
Webasto hopes that the new measures (read: layoffs) will stabilize the economy and that it will thus be better equipped for current market conditions.
