200 million savings program
Cutbacks: ams-Osram cuts 2,000 jobs worldwide
Styrian-German chip and sensor manufacturer ams-Osram has once again ended the 2025 financial year in the red, but has managed to stem the losses. At the same time, the group announced a new, brutal cost-cutting program on Tuesday: no fewer than 2,000 employees worldwide are expected to be affected.
Under the title "Simplify," a further €200 million is to be saved by 2028. Half of the workforce affected is to be based in Europe. However, Austria will not be affected, as a spokesperson assured. The group employs a total of around 20,000 people worldwide.
Annual loss reduced from €785 million to €129 million
The bottom line for 2025 was a net loss of €129 million, following a deficit of €785 million in the previous year. Revenue declined slightly by three percent year-on-year to €3.32 billion, which the company attributed to factors including the weaker US dollar and the phasing out of non-core activities. Operations performed better: adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by six percent to €608 million, with the corresponding margin climbing to 18.3 percent. In the fourth quarter of 2025, ams-Osram exceeded the midpoint of its own forecast range with sales of €874 million.
Cost-cutting targets achieved, but expectations remain subdued
CEO Aldo Kamper considers the "Reestablish the Base" restructuring program to be successful so far. The targeted annual savings of €220 million were achieved a year earlier than planned. With the new "Simplify" program, the group now wants to focus on its future as a "digital photonics powerhouse." Debt was reduced, among other things, by the recent sales of parts of the company to Infineon and Ushio.
Management is dampening expectations for the first quarter of 2026. Due to seasonal effects and the sale of parts of the company, sales are expected to decline to between €710 million and €810 million. In the medium term, ams-Osram is again aiming for single-digit growth and margins of over 25 percent in the semiconductor business.
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