Webasto cuts 650 jobs amid financial struggles and restructuring
Webasto, a German automotive parts manufacturer, plans to lay off 650 employees as part of a restructuring. The company is struggling with financial issues.
Webasto, a well-known German manufacturer of panoramic roofs and ventilation systems, has announced a plan for mass layoffs. This reduction will affect 650 people, which is approximately one-sixth of all employees. This decision is part of a new cost-saving program aimed at helping the company deal with the worsening situation in the automotive industry.
Restructuring at Webasto
The layoffs will primarily affect administrative departments and the development area. The company plans to adjust its production capacities according to the current level of demand. The changes will include facilities in Gilching, Hengersberg, Neubrandenburg, and Utting, as well as the headquarters in Stockdorf near Munich.
The management of Webasto and representatives from labour unions have agreed to the planned restructuring. It was emphasized that the process of reducing employment will proceed in a socially responsible manner, considering a conscientious social plan for the laid-off employees.
Financial problems and management changes
Webasto's financial troubles began last year. In December, the company reached a stabilization agreement with creditors, and in March, long-time CEO Holger Engelmann unexpectedly left. At that time, the company announced a review of organizational structures and production capacities.
Webasto explains that sales results were lower than expected. The company cites difficulties in the automotive sector and geopolitical challenges as the main reasons for the deteriorating situation.
Despite the difficulties, Webasto is not giving up on electromobility but will adjust the pace of development to align with new financial realities. The company intends to continue investing, although on a smaller scale.
