Under pressure

Automotive supplier Hirschmann cuts jobs

The automotive supplier is facing a phase of upheaval.(Bild: Hirschmann)

Hirschmann is to cut 100 of its 1350 jobs at its headquarters in Rankweil. The reason for this is a drop in market demand. Current forecasts do not point to a recovery in the near future.

Although the Hirschmann Automotive Group's turnover grew by 16.2 percent in the previous year, the structures are to be adapted to the changed market conditions. As a supplier to the automotive industry, Hirschmann is feeling the pressure of competition from Asia, some of which is reaching the suppliers via the vehicle manufacturers. Wage cost increases of 22 percent over the past three years would also contribute significantly to jeopardizing competitiveness.

Savings are also to be made in the management area. Chief Operating Officer Sebastian Herler has left the company for personal reasons and his position as COO will not be filled for the time being.

Longer lean period
The savings are necessary "to ensure the long-term success of the company", said CEO Angelo Holzknecht. The company continues to anticipate a positive trend in e-vehicles, but expects the originally planned volumes to be delayed by around two years.