Major Job Reductions Announced by Thyssenkrupp Presta
Thyssenkrupp Presta AG, a key player in the automotive supply sector, has announced plans to cut up to 570 jobs at its facilities in Eschen, Liechtenstein, and Oberegg, Switzerland, over the next twelve months. This significant reduction represents approximately a quarter of the total workforce across both locations. The company cited severe challenges within the global automotive industry as the primary reason for the restructuring.
Automotive Sector Pressures Drive Restructuring
The decision to implement mass layoffs stems from what Thyssenkrupp Presta describes as 'ongoing challenges facing the automotive industry.' These include structural market changes, technological upheavals, and shrinking sales figures, which have placed the business under increasing pressure. According to Evelin Veit, Communications Manager for Thyssenkrupp Automotive Technology, 'Our current structures do not allow us to compete internationally in the long term.' The job cuts will primarily affect non-productive areas, though various departments will be impacted.
Company's Commitment and Social Plan
Viktor Molnár, COO of Thyssenkrupp Automotive Technology and future Managing Director of Presta, emphasized the gravity of the situation, stating, 'The situation is serious – our current structures do not allow us to compete internationally in the long term.' Thyssenkrupp Presta has affirmed its commitment to mitigating the impact on employees. The company plans to develop a comprehensive social plan in collaboration with staff representatives, which will include individual support offers for affected personnel. Despite previous measures such as a hiring freeze and an efficiency program, the company deemed the layoffs unavoidable.
Government and Industry React to Layoffs
The Liechtenstein government and the Office for Economic Affairs (Amt für Volkswirtschaft) were informed of the planned job cuts by Thyssenkrupp Presta early in the week preceding the public announcement. Katja Gey, head of the Office for Economic Affairs, confirmed the government's awareness and stated that they are working closely with Thyssenkrupp Presta to provide measures for rapid re-integration into the labor market and job search assistance. The Liechtenstein Chamber of Industry and Commerce (LIHK) also expressed concern, with CEO Maximilian Rüdisser noting that 'every lost job is one too many.' Despite the layoffs, Thyssenkrupp has reiterated its commitment to maintaining its presence at the Eschen site.
6 Comments
Donatello
The company's commitment to a social plan is positive, but 570 jobs is a significant loss for the region. It highlights the rapid structural changes in global manufacturing.
Manolo Noriega
Necessary restructuring for long-term survival.
Ongania
Unfortunate, but market realities are harsh.
Manolo Noriega
The decision is tough, reflecting global automotive challenges. Yet, we must question if enough was done to innovate and reskill internally before resorting to mass layoffs.
Fuerza
It's understandable that a company must adapt to market shifts and technological upheavals. However, the government and community need robust plans to help reintegrate these skilled workers.
Noir Black
Adapt or perish, smart business decision.