Webasto announces major layoffs in response to financial strain
Webasto, a German automotive parts manufacturer, plans to lay off 650 employees as part of a restructuring effort. The company is currently facing financial difficulties.
Webasto, a well-known German manufacturer of panoramic roofs and ventilation systems, has announced a plan for mass layoffs. The reduction will affect 650 people, which is approximately one-sixth of the workforce. This decision is part of a new cost-saving programme aimed at helping the company tackle the worsening conditions in the automotive industry.
Restructuring at Webasto
The layoffs will mainly impact administrative and development departments. The company plans to adjust its production capacities to match current demand levels. The changes will include facilities in Gilching, Hengersberg, Neubrandenburg, and Utting, along with the headquarters in Stockdorf near Munich.
The management of Webasto and representatives of the labour unions have agreed to the planned restructuring. It was emphasised that the process of reducing employment will proceed in a socially responsible manner, considering a fair social plan for the employees being laid-off.
Financial problems and management changes
Webasto's financial troubles began last year. In December, the company reached a stabilisation agreement with creditors, and in March, long-time CEO Holger Engelmann unexpectedly departed. At that time, the company announced a review of organisational structures and production capacities.
Webasto explains that sales results were lower than anticipated. The company cites difficulties in the automotive sector and geopolitical challenges as the primary reasons for the worsening situation.
Despite the difficulties, Webasto is not abandoning electromobility, though it will adjust the pace of development to fit the new financial realities. The company intends to continue investments, albeit on a smaller scale.
