Enormously increased raw material and energy costs in combination with falling demand are forcing the first companies to cut back on personnel. Not only Lenzing AG, whose board of directors has now decided on the social plan negotiated with the works council, is taking steps here.
Huge jumps in energy prices; extremely expensive raw materials; Wages that rise due to inflation and the associated high collective labor agreements; at the same time a partly falling demand and a lot of uncertainty – all this is now forcing the first companies to start saving.
At Rosenbauer, a “fitness program” (quoting CEO Sebastian Wolf) aims to increase the fire service supplier’s productivity, reduce costs and help Leondinger out of the red. 25 employees have to go.
Linz-Textil pulled the string: in October CEO Friedrich Schopf announced that the plant in Landeck/Tirol would be closed at the end of March 2023. 70 employees lose their jobs after the yarns produced there are no longer competitive in terms of price with products from Asia.
Steps are also being taken at Lenzing AG: At the manufacturer of special fibers, the social plan negotiated with the works council was approved by the management on Monday. The company reduces its costs by 70 million euros per year. As reported, about 150 employees will have to leave Lenzing alone for this.
Job losses will begin in the first quarter of 2023
The first separations will take place in the first quarter of 2023. The group led by Stephan Sielaff expects an operating profit before depreciation of EUR 250 million this year. In 2021 that was still 362.9 million euros.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
