Autoliv Plans To Cut 8,000 Jobs And Close Sites
Autoliv, the world's largest manufacturer of airbags and seatbelts, is set to reduce its workforce by approximately 8,000 jobs as part of efforts to accelerate cost savings in response to surging inflation.
The Swedish company, serving renowned global automakers, announced its intention to eliminate roughly 6,000 direct positions and up to 2,000 indirect roles not directly involved in production lines. By 2025, the job cuts, accounting for around 11 per cent of both direct and indirect jobs, will entail the closure of multiple European sites.
Autoliv's CEO, Mikael Bratt, emphasised that these initiatives aim to optimize their geographic footprint and streamline operations. These cost-cutting measures align with similar actions undertaken by various companies facing economic challenges and inflationary pressures, including those in the automotive industry.
Autoliv reported the worst cost inflation in three decades in January 2022 and has been striving to pass on those increased costs to customers. Negotiations, especially with European customers in an inflationary and challenging macroeconomic environment, have been detailed and intricate, involving component-by-component and plant-by-plant discussions.
Autoliv's shares listed on the Swedish stock exchange experienced a 3.4 per cent rise, reaching 988 Swedish crowns at 10:11 GMT. Competing against companies such as ZF and Joyson Safety Systems, Autoliv restated its full-year outlook in April, anticipating an adjusted operating margin increase to approximately 8.5 to 9 per cent.
