Adient PLC (NYSE:ADNT) has put forward restructuring plans in Europe to reduce operating, administrative and engineering costs.
The plan primarily consists of workforce reductions and the transfer of work to countries with lower labor costs.
This move is in response to the changes in the European automotive market and to ensure the company's competitive cost structure by slashing labor costs and increasing efficiencies.
Adient expects a restructuring charge of approximately $125 million in the second quarter of fiscal year 2024, entirely related to termination benefits in Europe.
The restructuring actions mentioned will occur in fiscal 2025 and 2026 and are expected to be completed by fiscal 2027.
The restructuring activity is expected to result in the annual operating cost reduction of $60 million.
As of September 2023, Adient had 70,000 employees worldwide, with about 42% of them working in the Europe, Middle East and Africa (EMEA) region, reported Reuters.
Strikes by the United Automotive Workers (UAW) affected production volumes, affecting sales in the December quarter.
Adient supplies seats to automotive majors, including Ford Motor Co (NYSE:F), General Motors Co (NYSE:GM), Stellantis N.V. (NYSE:STLA), Volkswagen AG (OTC:VWAGY) and Renault SA (OTC:RNSDF).
Price Action: ADNT shares closed higher by 0.55% at $28.99 on Monday.
Photo by Shuttershock
Adient PLC（紐約證券交易所股票代碼：ADNT）提出了歐洲重組計劃，以降低運營、行政和工程成本。
該計劃主要包括裁員和向勞動力成本較低的國家轉移工作。
此舉是爲了應對歐洲汽車市場的變化，並通過削減勞動力成本和提高效率來確保公司具有競爭力的成本結構。
Adient 預計 2024 財年第二季度將產生約 1.25 億美元的重組費用，全部與歐洲的解僱福利有關。
上述重組行動將在 2025 財年和 2026 財年進行，預計在 2027 財年完成。
預計重組活動每年將減少 6000 萬美元的運營成本。
據路透社報道，截至2023年9月，Adient公司在全球擁有7萬名員工，其中約42%在歐洲、中東和非洲（EMEA）地區工作。
汽車工人聯合會（UAW）的罷工影響了產量，從而影響了 12 月份的銷售。
Adient 爲福特汽車公司 (NYSE:F)、通用汽車公司 (NYSE:GM)、Stellantis N.V. (NYSE:STLA)、大衆汽車公司 (OTC:VWAGY) 和雷諾汽車公司 (OTC:RNSDF) 等汽車巨頭供應座椅。
價格走勢： ADNT 股價週一收盤上漲 0.55%，報 28.99 美元。
圖片來源：Shuttershock
