BERLIN (dpa-AFX) - Heidelberger Druckmaschinen AG (HBGRF.PK), a German engineering company, said on Monday that, among other things, it has decided to axe around 450 staff at its Wiesloch-Walldorf site to reduce costs and boost its business.
In addition to jobs in production, the measure also includes targeted reductions in administration and management, the company said in a statement.
This follows a deal with Works Council and IG Metall, which applies with immediate effect until December 31, 2028. This also includes a site guarantee for 3,500 staff as well as investments in the site.
The site currently has around 4,000 staff members.
The move will result in special items of around 30 million euros for the current financial year and a reduction in the company's personnel costs by over 100 million euros over the next three years.
To date, Heidelberg's personnel costs amount to around 800 million euros a year, corresponding to around one third of turnover. Over 50 percent of personnel costs are incurred in Germany, the majority of which are incurred at the Wiesloch-Walldorf site.
At the same time, future investments are also secured for the Wiesloch-Walldorf site to boost its infrastructure and operational capabilities with the help of modern technologies.
Looking ahead, for the full year, the company has confirmed its guidance. Heidelberger continues to expect adjusted EBITDA margin to remain at the previous year's level of 7.2 percent. Sales also are also expected to remain at the last year's level of 2.395 billion euros.
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