© harman Electronics Production | October 19, 2020
Harman to cut 1’500 jobs globally
Evertiq has learned that the automotive supplier is planning to reduce its headcount to “align with its longer-term goals”. This decision will result in a reduction of 1’500 positions globally.
In an internal email, seen by Evertiq, CEO Michael Mauser details to the company’s employees the background and the reasoning behind the decision. The CEO points out that Harman, as well as the sectors in which it operates, have been facing systemic long-term industry challenges; these includes increased cost pressures, disruptive digital technologies as well as intensely competitive environments. “As an organization, we need to continue to evolve in order to remain competitive and deliver sustainable growth and profitability,” Mr. Mauser writes in the email. To achieve this, the CEO says that the company must remain “nimble and realistically assess our structure for efficiency” so that the company will be “fit for the future”. The company’s recent divisional reorganisation is pointed out as a first step for the company in addressing the evolving business environment – which would result in operating in a more streamlined fashion. The email continues to state that the company is continuing the strategic realignment of the organisation toward a platform-driven approach and a stronger focus on product management. As the company continue to implement its new organisational structure, it has examined its implications for roles across geographies, divisions, functions, and levels, and found that cuts need to be made. In the email the CEO says that “we have determined that reductions to our overall headcount are needed to align with our longer-term goals. The result of this assessment is that we will be reducing 1,500 positions globally.” He continues to say that the company is turning to this step only after a long and thoughtful review. The decision to cut the 1’500 positions was, according to the email, made to ensure the long-term viability of the company. Additionally, the CEO emphasises that this action is part of a “broader strategic review that has been ongoing for several years and is not directly triggered by COVID-19.” This action concludes several divisional reorganisations that had been announced earlier this year and were already underway when the pandemic started to emerge globally. As per Evertiq’s sources, some employees in Europe have already received the official notice about their dismissal.