© Autoliv Electronics Production | July 23, 2019
Autoliv updates on headcount reductions
Autoliv's total workforce declined by 1'208 in the 2nd quarter, mainly direct labor. The company also Initiated actions to reduce indirect headcount by about 5%, with additional restructuring measures are being evaluated.
Comments from Mikael Bratt, President & CEO: "We experienced another challenging quarter dominated by severe weakness in global light vehicle markets and high raw material costs with reduced profitability as a consequence. The uncertainty remains high in a falling market and we currently do not see any signs of a turnaround in light vehicle demand. Therefore we now indicate a lower full year 2019 sales and profitability. As market weakness has continued in the second quarter, we have stepped up the cost improvement actions, including targeting a reduction of our indirect workforce by approximately 5% and implementing a sharpened purchasing process. We already see effects from our current cost reduction actions, with total headcount declining by around 1,200 in the second quarter and launch related costs continuing to decline vs. the first quarter. I am generally pleased with how we managed the sharp decline in global LVP by the cost reduction actions we implemented and are planning. Furthermore, I see both room and need for additional improvements in certain areas." (Dollars in millions, except per share data)
|Q2 2019||Q2 2018||Change||H1 2019||H1 2018||Change|
|Adjusted operating income||$183||$230||(20)%||$350||$475||(26)%|
|Adjusted operating margin||8.5%||10.4%||(1.9)pp||8.1%||10.7%||(2.6)pp|