Saturday, April 13, 2024

Huge car company lays off 10,000 employees and bets on artificial intelligence

The world's largest supplier of interiors and cabins for passenger cars, Forvia, is now laying off 10,000 employees, who will be replaced by artificial intelligence.

This is the way it goes in many industries. And now Forvia, the world's largest supplier of interiors for passenger cars, is taking a drastic step in the car industry.

Over the next five years, Forvia will lay off 10,000 of its employees in Europe. Several of their tasks will instead be handled by robots with artificial intelligence.

Right now, the company employs 75,500 people. So the round of layoffs corresponds to 13 percent of them disappearing from the payroll.

That's what Automotive News Europe writes.

READ ALSO: 4,000 cars from Fisker are being investigated for a new critical fault

– We expect to cut around 2,000 to 2,500 positions per year, says Forvia's financial director Olivier Durand.

If the company completely ramps up the layoffs, it could mean that up to 12,500 people associated with Forvia will have to find new jobs within the coming years.

The company itself expects that the many layoffs will be able to save them around half a billion euros, corresponding to DKK 3.72 billion from 2028.

The list of Forvia's customers includes car brands such as Tesla, Volkswagen Group brands, BMW, Mercedes, Toyota, Kia and BYD.

This year alone, the French company expects sales of up to 28.5 billion euros. This corresponds to 212 billion Danish kroner. But that is not enough to avoid layoffs.

However, Forvia is far from the only company in the automotive industry to say goodbye to several employees. So must another well-known player.

In fact, the deeply indebted company must save so much money that no one or nothing in the entire group can feel protected. That's what the director says. Read more about it here .

Read more news from and about the automotive industry here!


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