The car industry is suffering from the Corona crisis – the supplier Hella is also not immune to this: he wants to cut 900 jobs in Germany. But the company cut jobs even before the pandemic.
The automotive supplier Hella is preparing for a long low in the industry and plans to cut around 900 jobs at its headquarters in Lippstadt by the end of 2023. Administration and development are affected, the headlamp specialist said on Tuesday.
“The general market environment has now changed significantly again. There is no way around further structural adjustments,” said CEO Rolf Breidenbach. Hella hopes that the job cuts and further cost-cutting measures at the locations in Germany will improve the operating result (EBIT) by 140 million euros. Initially, however, the cuts cost 240 million euros, which will continue to lead the family business to the edge of the loss zone in the new fiscal year 2020/21 (as of the end of May).
Already thousands of jobs cut abroad
Hella had come through the crisis with short-time work, but at most expects a slight recovery in 2020/21. However, Breidenbach emphasized that investments in automation and software were not to be saved. Revenue will be between 5.6 and 6.1 billion euros after having dropped 14 percent in 2019/20 to 5.8 billion euros.
In the past two years, 5,400 jobs have been cut, especially abroad, a spokesman said. Now Germany is moving into focus, where at least a quarter of the global workforce employs 36,000 people.