The automotive supplier Preh wants to cut 420 of its 1,700 jobs at its Bad Neustadt an der Saale location in Lower Franconia. Chief Executive Zhengxin Cai said Tuesday that the decline in sales “accelerated significantly” in the first quarter, especially for electric vehicle components. At the same time, our competitiveness suffers from the high costs of energy and labor compared to other countries Germany.”
The job cuts will affect all areas and functions and will be addressed by the end of the year, Cai said. After years of losses and short-time work, the company now has to take countermeasures.
The IG Metall Schweinfurt announced resistance. The first authorized representative Thomas Höhn said: “Unfortunately, the developments at Preh once again show very clearly that how immense the challenges are in the region
.” Works council head Daniel Rossmann said: “The announcement feels like a huge slap in the face – especially since management has not suggested any alternatives to job cuts.”
Preh belongs to the Chinese Joyson Group, employs around 7,400 people worldwide and generated sales of 1.7 billion euros last year.