Autoliv to reduce workforce by 320 personnel in France
Autoliv says the move is aimed to strengthen its competitive position long-term, adapting it to a substantially lower level of light vehicle production in post-pandemic Europe.
Autoliv, the worldwide leader in automotive safety systems, has announced its intention to reduce its headcount in France as part of the previously announced initiatives to reduce its global headcount and to optimise its footprint.
Autoliv states that it “continues to adapt and reduce its total workforce and to simplify its logistics and geographic footprint. These actions will significantly strengthen the company's competitive position long-term, adapting it to a substantially lower level of light vehicle production in post-pandemic Europe.
Autoliv plans to reduce its workforce in France by about 20% or approximately 320 employees at its major plants in France. The company aims to initiate these reductions in the first half of 2024 and they are expected to be fully implemented by the end of 2025. The reduction is expected to affect 220 indirect employees mainly in production overhead but also within R,D&E and S,G&A. Additionally, as part of the footprint optimization, Autoliv intends to relocate its steering wheel manufacturing in France to other plants, affecting approximately 100 direct employees.
Specific measures will be defined in compliance with the local regulations and within the framework of a dialogue with elected representatives and the social partners to determine the most appropriate provisions for the employees concerned.
These actions in France are expected to generate savings of around $10 million in 2024, reaching around $20 million in 2025 and around $25 million in 2026 when fully implemented.
"By these actions, we continue to build our market leadership. Structural cost reductions, simplified logistics and an optimized industrial footprint significantly strengthen Autoliv's competitive position long-term," said Magnus Jarlegren, President Autoliv Europe.
Expected cost savings: $110 million
With this announcement, the total announced reductions of direct headcount are around 400 and more than 1,300 for indirect headcount. Total expected annual cost savings from these announcements amount to around $45 million in 2024, reaching $85 million in 2025, and $110 million when fully implemented.
Yesterday’s announcement is the final major communication related to the indirect headcount reduction initiative that was announced in June, aiming for up to 2,000 indirect headcount reductions. Autoliv has also stated that “Further reduction of global headcount as part of the initiative will be through minor actions and natural attrition with limited accruals. Related to such minor actions and natural attrition, we expect an additional reduction of around 250 indirect employees globally, in the near term.”
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