According to media reports, German automotive parts supplier Webasto is planning a large-scale layoff. The company's CEO, Holger Engelmann, stated on March 14 that the company's performance in 2023 was "disappointing, forcing us to take action."
In 2023, despite a slight increase in turnover to 4.6 billion euros (approximately $5.03 billion), Webasto's earnings before interest and taxes (EBIT) were only 20 million euros.
"Therefore, we have launched a comprehensive plan to continuously improve the company's performance and ensure Webasto's future," Engelmann said. "This means that a double-digit percentage reduction in workforce may be inevitable for the company." It is reported that Webasto's management board will inform employees of relevant targets and decisions in the coming weeks.
Webasto stated in a press release that due to economic slowdowns in some regions, the company had already adjusted some production capacity (including in China) during 2023 and froze global recruitment last fall. By the end of 2023, Webasto had 16,600 employees worldwide, slightly lower than the previous year for the first time in many years (2022: 16,800 employees).
With a clearer focus on the "electrification" field in the industry and a strengthened product strategy in the electric vehicle sector, Webasto also sold most of its charging solutions business earlier this year.
Engelmann emphasized that Webasto's traditional business is well positioned, providing panoramic sunroofs and roof systems for electric vehicles. However, the overall situation for automotive parts suppliers continues to deteriorate: "Our data reflects significant fluctuations in demand, increased cost pressures, the impact of inflation, supply chain disruptions, and sluggish development in many markets."
Therefore, Webasto is preparing for the fact that many external factors will continue to hinder its business development. "To continue developing innovative and sustainable solutions for present and future mobility while maintaining long-term competitiveness, Webasto must be more financially resilient, and we are taking appropriate measures for this," Engelmann said.
