Fiber manufacturer

Lenzing to Cut 2,000 Jobs Worldwide by the End of 2027

Shock at the fiber manufacturer: Production in Burgenland is set to wind down by the end of the year.(Bild: APA/TEAM FOTOKERSCHI/WERNER KERSCHBA)

The publicly traded fiber manufacturer Lenzing is cutting approximately 2,000 jobs worldwide by the end of 2027. CEO Georg Kasperkovitz confirmed this. Fiber production at the Heiligenkreuz site in Burgenland will wind down by the end of 2026, and at the Grimsby site in England by the end of 2027. Lenzing shares have since plummeted by nearly 17 percent on the Vienna Stock Exchange.

The two sites are to be sold. An existing severance plan applies to the affected employees in Heiligenkreuz, where 285 people still work. The company is looking for a buyer to preserve as many jobs as possible.

2,000 Fewer Jobs
Lenzing’s global workforce of 7,700 full-time equivalents (as of the end of 2025) will decline significantly by the end of 2027. When asked, Kasperkovitz said that by then, the company plans to reduce its workforce by approximately 2,000 positions. However, the Lenzing CEO emphasized that this is by no means a closure or cost-cutting program as part of the new strategy, pointing to the confidence in the plans expressed by shareholders and other financiers, who are providing up to 600 million euros in fresh funding. The headquarters in Lenzing, Upper Austria, will also be upgraded.

Nevertheless, shares of the fiber manufacturer Lenzing plummeted by nearly 17 percent on the Vienna Stock Exchange on Tuesday morning—that is, after the layoff plans were announced—and were last trading at just 20.30 euros.

Capital Increase Planned
To strengthen its financial structure, Lenzing intends to carry out a capital increase with subscription rights totaling up to 300 million euros, which requires approval at an extraordinary general meeting scheduled to take place on or around August 25, 2026. In addition, the new financing agreements will provide up to 300 million euros. The maturities of existing liabilities have been extended until 2030.

Overall, the Group aims to strengthen itself and ensure a stable and reliable supply to its customers. It is accelerating its “strategic realignment” initiative called “Grow Nonwovens, Reset Textiles.” The goal is to “sustainably improve the Lenzing Group’s competitiveness and profitability, increase return on investment, and position the company for long-term growth in higher-value market segments.” In light of the overall challenging market environment for cellulose fibers, the company plans, among other things, to realign its textile business.

“A Difficult but Necessary Decision”
“We are aware that the planned phase-out of production at individual sites is a difficult but necessary decision that affects our employees,” said Kasperkovitz. The company intends to act responsibly toward the employees who will lose their jobs. “We are currently engaged in constructive discussions with employee representatives regarding the necessary measures within the framework of existing social plans and applicable local regulations.” Lenzing is also in the process of selling its Indonesian viscose site, PT South Pacific Viscose.

As part of this site consolidation, Lenzing AG expects to recognize impairment losses on long-term assets—in particular, property, plant, and equipment—of up to 150 million euros in 2026. These non-cash impairments (depreciation and amortization) are expected to have a negative impact on consolidated EBIT and net income in 2026 but will not affect EBITDA in 2026. In addition, restructuring provisions related to workforce measures of up to 40 million euros are expected to reduce EBITDA in 2026.

England and Indonesia
Savings of 25 million euros have already been achieved through the reduction of 267 administrative staff members. With the target of 600 employees—announced last fall—the company aims to achieve savings of 45 million euros in this area. The remaining savings, totaling 120 million euros, are to be achieved through the newly presented measures.

For the affected employees in Grimsby, England, the Upper Austrian company—headquartered in Lenzing, where it produces cellulose fibers and conducts research and development—plans to coordinate with employee representatives and the relevant stakeholders. In Purwakarta, Indonesia, Lenzing is reducing production to two lines and intends to implement the associated job cuts in accordance with local legal regulations.

The owners of Lenzing
Lenzing processes wood into pulp and uses it to produce fibers for the fashion, retail, industrial, cosmetics, and hygiene sectors. The main shareholder of Lenzing AG is the Austrian industrial holding company B&C, which holds a 37.25 percent stake. In 2024, B&C relinquished its majority stake in Lenzing; the Brazilian pulp group Suzano acquired a 15 percent stake and is in a syndicate with B&C. Suzano has a call option for an additional 15 percent through 2028. The U.S. investment bank Goldman Sachs owns 10.01 percent, and 37.74 percent of Lenzing’s shares are in free float.