MAN Energy Solutions (ES) is to lay off nearly 4,000 staff as the company aims to cut EUR450m in costs and ride out the impact of the Covid-19 pandemic.
The majority of the redundancies will come in Germany where MAN ES plans to lay off some 3,000. The other 950 will come from the company’s operations around the world. MAN ES is aiming to make the cuts quickly with saying it has a “strong focus on fast implementation”.
MAN ES said it aimed to make the workforce reductions as “socially responsible manner as far as possible, although compulsory redundancies cannot be completely ruled out”.
“In the light of the effects the Covid-19 pandemic has on our target markets, we must act fast,” said Martin Rosik, board member responsible for human resources at MAN Energy Solutions.
“The company and the employee representatives are therefore negotiating under great pressure. Our focus is on structural improvement and on reaching the cost down target. We will negotiate the feasible options to get there with the employee representatives in a very timely manner.”
Through the restructuring programme MAN ES said aims to reduce costs by EUR450m and improve operational flexibility. The aim is to achieve an operating margin of 9% and improve the company’s cash and liquidity position by 2023.
“We need to prepare ourselves for a market environment that will remain difficult for a long period of time,” said Dr. Uwe Lauber, ceo of MAN ES.
“Some of the company’s key areas of business, such as the cruise ship business, have been directly affected by the economic impact of the Covid-19 pandemic and we do not expect to see a recovery to pre-crisis levels until 2023. The program is designed to address these negative market influences and make lasting improvements to MAN Energy Solutions’ ability to respond to market fluctuations.”
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