Swiss Steel Group says it is adjusting headcount, in reaction to the current economic conditions and persistently weak demand. This will result in the loss of around 800 full-time positions in Switzerland and abroad, the company informs Kallanish.
Weak demand in the European manufacturing industry, low production levels, and the modest growth outlook among Swiss Steel’s key customers necessitate further adjustments, it says in a statement.
The “capacity” reduction, as the firm terms it, is already in the final stages of planning and primarily impacts the European production sites as well as the entire sales organisation. Through this programme, the group will further reduce 530 jobs and adjust an additional 270 full-time positions in a cost-equivalent manner by reducing weekly working hours, it says.
It does not specify what tonnage will be affected.
For additional capacity adjustment, weekly contractual working hours at Deutsche Edelstahlwerke in Germany will be reduced by approximately 15%. These steps will be implemented promptly to take full effect in 2025, Swiss Steel says. As a result, the maker of special bar quality products will reduce its workforce to under 7,000 employees by the first half of 2025.
In Switzerland, 130 of the current 750 jobs at the Emmenbrücke plant are planned to be reduced. The positions to be eliminated will affect both production and administrative areas. It is anticipated that natural attrition alone will not suffice, making it necessary to terminate approximately 80 employees. These planned measures are currently subject to ongoing consultation, the firm notes.
Swiss Steel emphasises that the measures are aimed at ensuring the long-term optimisation and security of its production sites in Switzerland, Germany, and France. They complement the ongoing SSG 2025 strategy and restructuring programme, which has already achieved significant cost reductions, the company concludes.
Christian Koehl Germany
