Webasto to lay off 650 in major restructuring effort
Webasto, a German automotive parts manufacturer, plans to lay off 650 employees as part of a restructuring effort. The company is facing financial difficulties.
Webasto, a well-known German manufacturer of panoramic roofs and ventilation systems, has announced plans for mass layoffs. The workforce reduction will affect 650 people, which represents about one-sixth of all employees. This decision is part of a new cost-saving program aimed at helping the company navigate the challenges within the automotive industry.
Restructuring at Webasto
The layoffs will primarily impact the administrative departments and the development sector. The company plans to adjust production capacities to align with the current demand. The changes will affect facilities in Gilching, Hengersberg, Neubrandenburg, and Utting, as well as the headquarters in Stockdorf near Munich.
Webasto's management and union representatives have agreed to the planned restructuring. It was emphasized that the workforce reduction process should proceed in a socially acceptable manner, with consideration given to a responsible social plan for the affected employees.
Financial problems and management changes
Webasto's financial challenges began last year. In December, the company reached a stabilization agreement with creditors, and in March, long-time CEO Holger Engelmann unexpectedly left. During this time, the company announced a review of its 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 its worsening situation.
Despite the difficulties, Webasto is not giving up on electromobility; however, it will adjust the pace of development according to new financial realities. The company intends to continue investing, albeit on a smaller scale.
