German automobile supplier Brose announces job-cuts

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German automobile supplier Brose announces job-cuts

Brose, the German supplier of auto-parts, has reportedly announced it would be slashing around 2,000 jobs across the country across the coming three years. The company cited poor demands from China, unstable international pricing and even changes in the operations of the international automobile industry as reasons for the job-cuts.

Kurt Sauernheimer, the company’s Chief Executive Officer (CEO) released a statement announcing this move. In the statement, he also said, “We want to improve quality ... and reduce costs in the mid three-digit million range to increase our competitiveness”.

By implementing the move, Brose wants to transfer jobs to low-earning countries. It said that this would help increase competitiveness. Likewise, the company is also seeking to end hierarchical positions, and come up with simplified business operations.

The company currently has a workforce of about 26,000 personnel across the world. Brose Fahrzeugteile is a family-owned company that was started around 111 years ago, in 1908, in Berlin by Max Brose. The company is presently headquartered in the German city of Coburg.

Its business is operational in around 62 countries, according to data available for 2018. For the same year, its revenue generation was over €6 million. Vis-à-vis, the company standards, this was perceived as less-than-favourable revenue collection.

Coupled with a further crashing of around five per cent in the revenue for 2019’s first-quarter ended 31st March, the company devised a new cost-cutting measure to save around €10 million.