As a result of the difficult economic situation, domestic listed printed circuit board manufacturer AT&S has to cut up to 1,000 jobs worldwide, including up to 250 in Styria. Last year the group ended up in the red. As a result, the austerity program will be intensified. The stock is rising.
According to Andras Gerstenmayer, CEO of AT&S, the job losses will be a combination of layoffs and the inability to fill natural replacements such as retirements or fluctuations. The up to 250 affected positions in Austria are “all in Styria”. The company produces in Leoben and Fehring. The remaining up to 750 jobs are mainly in Asia; AT&S operates factories in China.
When asked when he will know exactly how many employees are involved and where, Gerstenmayer answers: “We will know much more specifically in two months.” You have to proceed step by step and make preparations, because “people are all working, so you are.” must first look at where you can make “processes more efficient”.
It is “necessary to make adjustments in the high-wage regions,” said the AT&S boss, in view of high costs in Germany: “Over the past four years we have had to complain about wage and salary increases of 32 percent in Austria due to the concluded collective labor agreements – about three times as many in Asia.”
The economic situation has made it necessary to intensify the cost reduction program. Gerstenmayer: “The 2023/24 financial year was difficult for us and the entire market: inflation, interest rate increases and the many crises have had a more negative impact on the overall economy than expected.” laptops during the Corona period, demand for them has recently dropped – which also affects AT%S. “People now travel more and don’t invest as much in technical equipment. The spending pattern has completely changed.”
Consequence for AT&S: The bottom line is that the balance sheet amounted to a loss of 37 million euros in the past financial year, after a profit of 137 million euros the year before. Turnover fell by 13 percent to 1.55 billion euros.
Next time will still be difficult. Gerstenmayer: “We have enormous price pressure in the sector that will continue for some time. Ultimately, we also have to save money with our employees, we have to increase our efficiency to make ourselves fit and shape the future profitably.”
The manager has confidence in the future
In general, the manager has confidence in the future: “We are convinced that AT&S is active in the right markets. Computer use and electrification will remain trends in society in the future, and those who are best prepared can get back to work the fastest!”
For shareholders – including major investors Hannes Androsch and Willi Dörflinger – no dividend will be paid this year given the losses. However, the announcements were positively received on the capital markets: the share price rose by about five percent.
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.
