© filmfoto dreamstime.com Electronics Production | June 30, 2016
Leoni continues restructuring – 1100 jobs to go
Leoni is continuing to apply its previously announced measures aimed at improving the efficiency of its Wiring Systems Division.
Leoni’s Wiring Systems Division has introduced a new structure, trimming its organisation from five down to three levels: there are now just 12 Business Units, which operate globally with a profit-centre responsibility and coordinate the orders with the plants. The company explains in a press release that the pooling of central functions has made positions and interfaces redundant. In addition to having clear lines of responsibility and shorter decision-making channels, the company will benefit from lower costs. The Wiring Systems Division plans to cut about 1'100 jobs worldwide in 2016, of which around 70 in Germany. The savings will yield only minor earnings improvement in the 2016 financial year and restructuring will incur exceptional charges. From 2017, this year’s reorganisation measures will lead to a sustained increase in profitability. The company expects that this will in the future entail an annual boost of approximately EUR 30 million to earnings before interest and taxes.