Auto supplier Adient cuts jobs, transfers roles in Europe to shave costs – ET Auto

baua


European automakers face a trifecta of challenges: soft demand due to higher borrowing costs that discourage car purchases, fierce competition from Chinese rivals, and higher input costs squeezing their margins.

Automotive seating supplier Adient plc on Monday said it was restructuring its Europe business by cutting jobs and transferring work to countries with lower labor expenses, in a bid to cut costs.

The company did not disclose how many employees were affected by the layoffs or which countries it is shifting roles to. As of September 2023, Adient had over 70,000 employees worldwide, with about 42% of them working in the Europe, Middle East and Africa (EMEA) region.

European automakers face a trifecta of challenges: soft demand due to higher borrowing costs that discourage car purchases, fierce competition from Chinese rivals, and higher input costs squeezing their margins.

Adient supplies seats to some of Europe’s biggest automakers, including Stellantis, Renault, BMW, Mercedes Benz and Volkswagen , as well as American giants Ford and General Motors.

The company’s sales suffered in the first quarter ended Dec. 31, as the UAW strikes affected production volumes in the United States.

Adient’s new round of layoffs and the rest of the restructuring would result in a charge of about USD 125 million in the company’s fiscal second quarter. The plan would be completed by fiscal 2027, the company said, adding it expects about USD 60 million in reduced annual operating cost.

The company had outlined a restructuring plan earlier this year, including workforce reductions of about 13,000 employees, its first-quarter regulatory filing showed.

  • Published On Apr 23, 2024 at 05:16 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETAuto App

  • Get Realtime updates
  • Save your favourite articles


Scan to download App


This June, as many travelers make plans to attend Pride Month events around the world,…

After a first-of-its-kind collaboration, the Range Rover Electric will feature Fortescue’s advanced EV battery software….

Rivian has applied to certify its 2025 model year R1T and R1S, and the document…