"That hurts extremely"

Drumbeat at Lenzing: 500 jobs to be cut

The fiber manufacturer Lenzing is likely to face a major cost-cutting package.(Bild: Pressefoto Scharinger/Daniel Scharinger)

Lenzing, the Upper Austrian fiber manufacturer, has been dealt a major blow: according to information from the "Krone" newspaper, the listed company is apparently facing a major personnel savings package. According to the works council, 200 jobs are to be cut this year, followed by a further 300 through the outsourcing of administrative activities. The company will "neither confirm nor deny" this. A works meeting will be held on Monday.

However, it is still completely unclear whether a total of 500 jobs will actually be lost. Lenzing AG is a manufacturer of fibers for various textile applications. The headquarters of the globally active company is located in Lenzing in Upper Austria. Of around 7700 employees at all sites, around 3000 work at the "headquarters". According to the works council, a sixth of these employees are fearing for their jobs - it would be a clear cut.

Staff cuts in two phases
The job cuts are planned in two phases, as Stephan Gruber, Chairman of the Employee Works Council, says in an interview with "Krone": "In the first phase, 200 employees are affected, 70 percent of them white-collar workers and 30 percent blue-collar workers. This phase should be completed by the end of the year." In a second phase, administrative activities are to be outsourced to cheaper foreign countries, such as the Czech Republic and India, within the next two years. According to Gruber, this could cost another 300 employees - all of them white-collar workers - their jobs.

In total, 500 jobs would be lost at Lenzing AG, the vast majority of them at the main site. "That hurts extremely," says Gruber. The works council is still trying to cushion the savings. It is not yet clear whether the full 500 jobs will actually be cut. After all, building up public pressure is also part of the trade union repertoire. It would not be the first time that a watered-down solution has been agreed in negotiations.

Gruber says: "We are aware that we cannot completely prevent it. But we want to keep as many jobs as possible at the site." There is already a "very good redundancy plan" for those affected.

"Neither confirm nor deny"
The company itself did not want to "confirm or deny" the rumored savings package when asked by "Krone". "Since the start of our Performance Program 2023, the Management Board has made the Lenzing Group leaner, reduced leverage and implemented successful refinancing measures. Nevertheless, we recognize that significant further measures are needed to respond to the lack of market recovery and the intense competition in Asia. We are currently holding intensive discussions within the Group with the primary goal of further optimizing the cost structure of the Lenzing Group."

Works meeting with mayors from the region
The Supervisory Board will meet next Monday. A large works meeting will also be held in Lenzing on Monday morning in parallel with the management committee. Up to 1,000 employees and several mayors from surrounding communities are expected to attend - after all, the fiber manufacturer is the largest employer in the region. The works council wants to draw attention to its demands once again: "We expect investments at the site to secure jobs in the future. We want investments to be made in improving IT and no jobs to be outsourced. Many companies have already failed because of this."

Efficiency program has been running for some time
It has been known for some time that the fiber manufacturer has to make savings, and the company itself also refers to the "performance program". There have also been repeated staff reductions in recent years. This year, the company wants to save more than 180 million euros. The recovery of the global textile markets is only happening slowly, and high raw material, energy and logistics costs will continue, the company said this spring. In the first half of 2025, Lenzing AG posted sales of EUR 1.34 billion.