SGL to cut up to 300 jobs in Company Restructuring Plan
SGL Group have revealed details of the companies organisational restructuring, part of the cost savings program SGL2015.
The restructuring focuses on streamlining the management structures and the corporate and support functions, the planned restructuring will affect up to 300 positions across the group, with approximately half of them in Germany.
Additionally, indirect spend in the fields of sales, general & administration (SG&A) will be reduced by one third, from €90 million in 2012 to €60 million in 2015 as part of the organisational restructuring. Overall, the cost savings program is designed to achieve a total saving of €150 million by the end of 2015, with €50 million already saved in 2013.
Dr. Jürgen Köhler, designated CEO, SGL Group:
We are on track with the implementation of our cost savings program SGL2015. With this set of comprehensive measures we will make SGL Group more efficient and stronger, and strategically position the Company for the future. It is our top priority to implement the defined measures in order to generate the planned €150 million in cost savings by end of 2015.
The Board will be reduced from five to three members in the context of the generation change. Furthermore, the number of direct reports to the Board of Management will be reduced by almost half to around 20 positions. The Business Units will be given further global P/L responsibility, and the support functions within the Business Units will be streamlined.
Other organisational restructuring will affect up to 300 jobs across the Group, most of which are located in Europe (240) and about 150 in Germany alone. Another 37 jobs will be reduced in North America and 16 in Asia. The company has stressed that every effort will be made to achieve the necessary downsizing in a socially responsible manner. The available exit options have been developed and agreed with the works council entities.
Aside from the restructuring the program will also optimise the global production network as well as streamlining the Group’s portfolio. Through the plan, the company are addressing the challenging economic environment, which is characterised in particular by an poor price development in graphite electrodes, a cyclical and structural downturn in graphite specialties and losses caused by delays in the development and start-up phases in the Carbon Fibres & Composites business area. The objective of the program is to sustainably strengthen SGL Group’s competitiveness while enhancing the profitability of the Group.