© Bang & Olufsen Electronics Production | March 16, 2020
Bang & Olufsen needs to cut costs – workforce reduction awaits
The company has approved a cost reduction programme with a targeted annual saving of DKK 175 million (EUR 23.4 million) when fully implemented.
Part of the cost savings will be realised through a reduction of the workforce with approximately 115 employees, primarily in support functions in Denmark. The programme has a targeted annual saving of DKK 175 million when fully implemented in 2021/22. A large part of the cost reduction is expected to be realised in 2020/21, while the programme is not expected to yield any significant cost savings in the financial year 2019/20 ending 31 May 2020, B&O writes in a press release. The cost reduction programme is one of several initiatives that B&O is taking aimed at improving the its financial performance through streamlining of operations and investing in product development, sales and marketing. “The company is in a situation where we need to improve our profitability, and unfortunately that also means saying goodbye to valued colleagues. We have had a thorough process to assess where we could become leaner, simplify tasks and prioritise our resources better to help strengthen the profitability of Bang & Olufsen in the future. We will now work hard to ensure that the organisation continues to be motivated and fully focused on the key priorities while implementing the leaner organisation. At the same time, we will do our best to help affected colleagues move on and into their next job,” says CEO Kristian Teär in the press release.