STOCKHOLM: Autoliv is speeding up cost cuts, mainly in Europe, and expects to cut 6,000 jobs or 11% of its workforce, the world's biggest maker of airbags and seatbelts said on Thursday as it fights high raw material prices.
The Swedish company said the measures across its operations will include the closure of several sites in Europe, and it expects the changes to be fully implemented by 2025.
"These initiatives will continue to optimise our geographic footprint for a more effective structure," CEO Mikael Bratt said in a statement. "We intend to simplify and consolidate how we operate in all areas."
Auto suppliers have been hit by soaring raw material prices. Autoliv in January said cost inflation in 2022 was the worst in three decades, and that it was seeking to pass those costs on.
"The company continues to negotiate with its customers to secure pricing that reflects the extraordinary inflation and corrects structural price gaps," Bratt said on Thursday. "The highest priority and greatest challenge are the customer negotiations in Europe."
Autoliv, whose rivals include ZF and Joyson Safety Systems, reiterated a full-year outlook given in April for a widening of its adjusted operating margin to around 8.5-9.0%. - Reuters