© michal-kowalski-dreamstime.com Electronics Production | April 23, 2013
Kitron's operational streamlining continues
Kitron has introduced a wide range of improvement initiatives to increase profitability, reduce capital and stimulate top line growth. Layoffs are not to be ruled out.
These measures span the entire value chain, and include inventory reduction, manufacturing efficiency improvements and supply chain optimization. As part of the operational streamlining, Kitron launched a new organization in April. All manufacturing and supply chain activities will be organized in a global organization under the Chief Operating Officer (COO) while the customer delivery organization will be organized in three business areas. The purpose is to create a more customer centric organization while driving global standardization in the manufacturing and supply chain processes. Cost reductions initiated Cost reduction measures have been initiated in response to a market that is weaker than expected. Management is in process to evaluate further measures to be taken. As a large proportion of the costs is personnel related, headcount reductions can not be ruled out, the company writes.