Car parts maker Forvia plans to cut 13% of staff in Europe by 2028 (updated)
19/02/2024 07:07
(Adds job cut plans, margin and savings targets in paragraphs
1-4)
Feb 19 (Reuters) - European automotive supplier Forvia
FRVIA.PA said on Monday it plans to cut up to 10,000 jobs in
Europe over the next five years, including at Hella HLE.DE , as
part of its new "EU-Forward" programme.
The world's seventh-largest automotive supplier plans to
reduce 13% of its European workforce mainly through natural
attrition and drastically reduced recruitment in Europe.
"Our attrition rate is 2,000 to 2,500 people a year. So, in
fact, the plan does not mean making 10,000 people redundant at
all. What it does mean is that we need to ensure that
recruitment is limited to what is strictly necessary," Chief
Financial Officer Olivier Durand said in a press call.
Forvia targets a return to its pre-pandemic operating margin
of 7% in Europe, compared to 2.5% last year, supported by annual
savings of 500 million euros ($539 million) from 2028.
The group also forecast 2024 sales in the range of 27.5
billion to 28.5 billion euros, after its annual sales reached
the upper end of its guidance, in line with expectations.
The company, born from Faurecia's takeover of Hella,
reported sales of 27.25 billion euros for 2023, against 24.57
billion a year prior.
Analysts had expected annual revenue of 27.13 billion euros
according to an LSEG analyst poll nL5N3F132Y.
($1 = 0.9272 euros)
(Reporting by Nathan Vifflin; Editing by Jacqueline Wong and
Milla Nissi)
((nathan.vifflin@thomsonreuters.com; +48 58 769 67 13;))