Swedish automotive safety gear group, Autoliv, has revealed its plans to close factories in Elmshorn, Germany, and Congleton, Britain, as part of its cost-cutting measures. Autoliv, known for its customer base consisting of top automakers worldwide, had previously announced in early June that it aimed to reduce its total workforce by 11% and shut down multiple undisclosed factories in Europe.
The company stated in a recent statement that these initiatives would simplify its logistics and geographic footprint, leading to a significant reduction in its cost base. Initially, Autoliv plans to eliminate 1,100 positions out of the total planned reduction of 8,000.
Although the company expects to accumulate approximately USD 105 million in the second quarter due to these initial cuts, it clarified that this would not impact its adjusted operating margin for the quarter or the entirety of 2023.
Autoliv is among numerous companies grappling with challenges posed by high inflation and a stumbling global economy, particularly within the auto industry. These factors have compelled businesses to reevaluate their operations and make strategic decisions to streamline costs and remain competitive in the market.
As Autoliv takes steps to optimize its operations and enhance cost efficiency, the closures of the factories in Elmshorn and Congleton represent significant changes for the company.
