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300 jobs to go. Spinning machine manufacturer Rieter has to implement a savings programme. The Winterthur ZH-based company has received fewer orders this year. With no signs of a quick recovery, there are massive layoffs, especially in Winterthur and Germany.
Order intake fell 63 percent to 325 million francs in the first half of the year, as Rieter announced on Thursday. In particular, the component and spare parts business is doing slightly better, as demand for new machines is falling.
no surprise
In itself, the decline is no surprise. Analysts had expected this after things fell sharply in the second half of 2022. However, the currently reported figure is below the average expectations of experts. Communication speaks of a cyclical market slowdown. Management now expects a rebound in the new machinery business in the fourth quarter of 2023 at the earliest, and demand for spare parts will only pick up later in 2023.
Rieter is now planning its next savings programme. In this way, costs should be reduced by about CHF 80 million per year. The program foresees, among other things, the layoffs of around 300 people.
Above all, employees at the headquarters in Winterthur and branches in Germany, where Rieter currently employs 580 people, have to fear for their jobs. As a company spokesperson said at the request of the AWP news agency, the announced dismantling will take place there first and foremost geographically. According to the information obtained, he is meeting with the management.
400 to 600 shipments to be tracked
According to the spokesperson, further reduction of 400 to 600 jobs will affect production. According to the company, this additional discount clearly “cannot be excluded”. Depends on further market and volume developments. The company currently employs 5555 people worldwide.
Despite the decline in demand, the current situation is relatively comfortable for Rieter, as orders from buoyancy periods can still be fulfilled. And the company is making good progress in processing those backlogs, which still have around 1.1 billion volumes at mid-year. (SDA/lui)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
