Forvia to cut up to 10,000 jobs in Europe by 2028

In a sluggish automobile market, the equipment manufacturer Forvia announced, Monday February 19, a plan which could lead to the elimination of “10,000 jobs” by 2028 in Europe. The conditions of this plan must be negotiated from this Monday with the group’s union organizations.

Forvia, which manufactures, among other equipment, passenger compartments, headlights and exhaust systems, will benefit from revenue of 222 million euros in 2023, for a turnover of 27.2 billion euros (+10.9% over one year) but the company remains in debt, management said when presenting its results for the year 2023.

It is also about making the group less dependent on China, where Forvia records 27% of its sales but most of its profit. While the group had 75,500 employees in Europe at the end of 2023, notably in France, Germany, Poland, the Czech Republic and Spain, the plan “will concern all sites, but not in the same way”said Forvia’s financial director, Olivier Durand, during a press conference.

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Savings plan of 500 million euros

“We have had a decline in the European market, and we do not see any possible progression in the short or medium term. And on a number of sites that are not operating at full capacity”he stressed, affirming that the objective, with this plan, is to “restore our complete competitiveness”.

This savings plan, which should reach 500 million euros by 2028, will involve job cuts and reduced use of temporary workers, among other measures. “We must ensure that we limit recruitment to what is necessary, and manage the flexibility that we have through our subcontractors. Our industry moves regularly and we know how to adjust our industrial capacities”defended Olivier Durand, who also wishes “accelerate the deployment of artificial intelligence within the group”.

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The World with AFP