2023-06-08 05:47:51 ET
- Autoliv ( NYSE: ALV ) says it is accelerating its global structural cost reduction plans within its European operations, with a global reduction of ~11% of total direct and indirect workforce, expected to be initiated in second quarter of 2023.
- The move is expected to reduce up to 2,000 indirect positions globally, or around 11% of Autoliv's total indirect workforce, out of this up to 1,000 are expected to be in Europe.
- Autoliv also aims to simplify its logistics and geographic footprint and intends to close several sites in Europe.
- Furthermore, observing current sales levels as baseline, the company anticipates to reduce its global direct headcount, with reduction of around 6,000 positions globally, or around 11% of total direct workforce, the company said in a statement .
- The initiatives are expected to be fully implemented by 2025 and to have a pay-back time of 1-2 years and are expected to drive long-term improvement in margins and cash flow, the company added.
- Autoliv also reaffirmed its 2023 outlook indications from April 21, 2023 , of around 8.5-9.0% adjusted operating margin and operating cash flow of around $900 million.
- Share of ALV are up 1.9% in premarket trading on Thursday.
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Autoliv to speed up job cuts as part of cost reduction plans; reaffirms FY23 guidance