History
2024: Dismissal of 13% of employees
On February 19, 2024, the French company Forvia, one of the world's largest manufacturers of automotive components, announced a large-scale reorganization. Within the framework of this program, the number of personnel over five years will be reduced by about 13%.
There are several reasons for the need for restructuring. This is a difficult macroeconomic environment and a high inflation rate: due to these factors, Forvia is forced to cut costs. In addition, due to the growing popularity of electrified vehicles, it is necessary to revise the product range and adjust the volume of component production.
It is said that Forvia, which from 2022 includes the French supplier Faurecia and the German manufacturer of lighting and electronic components Hella, intends to abolish about 10 thousand jobs on a global scale. The reorganization program includes changes in regional industries, staffing and research and development costs. Forvia CEO Patrick Koller said that all these measures will help the company operate in accordance with the fundamental changes taking place in the automotive industry.
Favia plans to use artificial intelligence to optimize development costs. The introduction of such tools will also reduce excess capacity. At the same time, the company intends to reduce the size of the staff, including due to the natural loss of staff. Thanks to the reorganization, annual cost savings should reach about €500 million in 2028. In general, as noted, the changes will help Forvia improve the profitability of business operations and prepare to work with new customers from Asia.[1]
Notes
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