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Heidelberg reveals 1,500 German job lossesSimeon Goldstein, 8 October 2009Be the first to comment on this article Press manufacturer Heidelberg has revealed that 1,500 jobs will be shed at its German operations, but has managed to scale back its global headcount reduction from the 5,000 proposed in March to 4,000. Last October, the company set in motion plans to reduce staffing levels by 5,000 jobs by the end of 2009/10, but has managed to reduce costs through other measures. The 1,500 job losses will affect workers at sites in Heidelberg, Wiesloch/Walldorf, Amstetten, Brandenburg, Ludwigsburg and Mönchengladbach and will occur during the 2009/10 financial year. Today’s announcement does not affect the UK business. In a statement issued today, the firm said that the latest development, which follows consultations with employee representatives, “realises its package of cost-cutting measures”. Heidelberg chief executive Bernhard Schreier said: “Following constructive discussions, we have found a reasonable solution for everyone involved. “These painful cuts are essential to counter the effects of the most serious crisis of our industry and create a stable position for the company’s future.” In November 2008, Heidelberg announced its plan to reduce costs by cutting its workforce by 2,500 jobs and in January Packaging News reported that 10% of its UK workforce was to be laid off. Then in March this year, it announced plans to shed a further 2,500 roles and upped its cost-cutting target from EUR 200m to EUR 400m. Today’s announcement, however, puts the total number of job losses at 4,000. Additional savings will be made via a number of measures, including dispensing with “collectively agreed payments and payments above the general pay scale” and by flexible working agreements with staff. Heidelberg’s management board and executives will also forego remuneration. The programme will result in cost-cuts of more than EUR 250m in 2009/10. In addition to severance agreements, Heidelberg is offering those German employees affected the opportunity to move to a transitional company – a state-backed scheme that enables former staff to receive training for 12 months, while still receiving pay. The company’s redundancy and cost-cutting programme is expected to result in annual savings of about EUR 400m by the 2010/11 financial year. Click here for today’s headlines from across the packaging industry Speak Your Mind |
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