Auto supplier
Brose is initially cutting 700 jobs in Germany
The automotive supplier Brose is reducing its workforce. 700 jobs are expected to be cut by the end of next year. But the reform plans continue.
Due to low utilization of its factories, a slump in sales and a significant loss, the automotive supplier Brose wants to significantly reduce its workforce. The company announced that indirect personnel costs should be reduced by 20 percent. In a first step, 700 jobs are to be cut in Germany by the end of next year, 200 of which are at the headquarters in Coburg and Bamberg, and a further 120 at the Würzburg location.
“Due to the current call figures, the Brose Group will not achieve its targets this year either,” the company said in a statement. At 7.7 billion euros, sales are seven percent below plan and three percent below the previous year. Brose expects a loss of around 53 million euros for the 2024 financial year.
“These adjustments are painful, but necessary to secure the jobs of the remaining employees,” said company boss Stefan Krug. The dismantling should be implemented in a socially responsible manner. At the same time, the entire company will be reorganized in order to bundle tasks more efficiently and reduce management cuts.
The powerful company patriarch Michael Stoschek, who has since retired from management but is currently serving as chairman of the board of directors again, announced a few months ago that he wanted to cut around 1,000 of the 32,000 jobs worldwide. Another goal is to get partners on board. “Brose is the only company of this size in which four individuals bear the entire economic risk. We want to change that in the future and are therefore open to partners,” said the manager at the time. Stoschek currently holds the company shares together with his son, daughter and niece.
dpa
Source: Stern
