Heidelberg has finalized its previously announced job cuts of 1,300 this week to its sites at Wiesloch/Walldorf, Amstetten, Brandenburg, Ludwigsburg, and Mönchengladbach. A further 200 employees have agreed to leave the company on a mutually acceptable basis, making a total of 1,500 job cuts at the German sites in financial year 2009/2010.
“Following constructive discussions, we have found a reasonable solution for everyone involved,” stated Heidelberg CEO Bernhard Schreier. “These painful cuts are essential to counter the effects of the most serious crisis of our industry and create a stable position for the company’s future,” he added.
Heidelberg previously announced its intention to reduce its workforce by 5,000 by 2011. Following the discussions with its employees, the number has been revised to 4,000. The additional savings will be made by dispensing with collectively agreed payments and payments above the general pay scale, and by agreeing to flexible working time models to adapt personnel capacities to the order situation. The Management Board and executives are also foregoing remuneration to a comparable extent in order to help lower personnel costs. The agreed upon package of measures will result in these costs being cut by more than EUR 250 million during the current financial year, compared to the previous year.
By the end of the cuts in 2011, the company expects to save EUR 400 million. As of June 30, 2009, the Heidelberg Group employed 18,353 staff worldwide.