STOCKHOLM, Oct. 30, 2023 /PRNewswire/ -- Autoliv,
Inc. (NYSE: ALV) and (SSE: ALIVsdb), the worldwide leader in
automotive safety systems, today announces its intention to reduce
its headcount in France as part of
the previously announced initiatives to reduce its global headcount
and to optimize its footprint. Today's announcement is the final
major communication related to the indirect headcount reduction
initiative that was announced in June.
Aligned with previous communications, Autoliv continues to adapt
and reduce its total workforce and to simplify its logistics and
geographic footprint. These actions will significantly strengthen
the company's competitive position long-term, adapting it to a
substantially lower level of light vehicle production in
post-pandemic Europe.
Intended headcount reduction in France
Today, Autoliv announced its intention to reduce its workforce
in France by about 20% or
approximately 320 employees at its major plants in France. The company aims to initiate these
reductions in the first half of 2024 and they are expected to be
fully implemented by the end of 2025. The reduction is expected to
affect 220 indirect employees mainly in production overhead but
also within R,D&E and S,G&A. Additionally, as part of the
footprint optimization, Autoliv intends to relocate its steering
wheel manufacturing in France to
other plants, affecting approximately 100 direct employees.
Specific measures will be defined in compliance with the local
regulations and within the framework of a dialogue with elected
representatives and the social partners to determine the most
appropriate provisions for the employees concerned.
These actions in France are
expected to generate savings of around $10
million in 2024, reaching around $20
million in 2025 and around $25
million in 2026 when fully implemented.
The related costs for the headcount reduction will be accrued
this quarter. This will not impact the company's adjusted operating
margin for the fourth quarter or the full year 2023.
"By these actions, we continue to build our market leadership.
Structural cost reductions, simplified logistics and an optimized
industrial footprint significantly strengthen Autoliv's competitive
position long-term," says Magnus Jarlegren, President Autoliv
Europe.
Total cost savings from announced structural cost reduction
initiative in 2023
With this announcement, the total announced reductions of direct
headcount are around 400 and more than 1,300 for indirect
headcount. Total expected annual cost savings from these
announcements amount to around $45
million in 2024, reaching $85
million in 2025, and $110
million when fully implemented.
Today's announcement is the final major communication related to
the indirect headcount reduction initiative that was announced in
June, aiming for up to 2,000 indirect headcount reductions. Further
reduction of global headcount as part of the initiative will be
through minor actions and natural attrition with limited accruals.
Related to such minor actions and natural attrition, we expect an
additional reduction of around 250 indirect employees globally, in
the near term.
Inquiries:
Media: Gabriella Etemad, Tel +46
(70) 612 64 24
Investors & Analysts: Anders
Trapp, Tel +46 (70) 957 81 71
Investors & Analysts: Henrik
Kaar, Tel +46 (70) 957 81 14
About Autoliv
Autoliv, Inc. (NYSE: ALV; Nasdaq Stockholm: ALIV.sdb) is the
worldwide leader in automotive safety systems. Through our group
companies, we develop, manufacture and market protective systems,
such as airbags, seatbelts, and steering wheels for all major
automotive manufacturers in the world as well as mobility safety
solutions, such as pedestrian protection, connected safety services
and safety solutions for riders of powered two wheelers. At
Autoliv, we challenge and re-define the standards of mobility
safety to sustainably deliver leading solutions. In 2022, our
products saved close to 35,000 lives and reduced more than 450,000
injuries.
Our close to 70,000 associates in 27 countries are passionate
about our vision of Saving More Lives and quality is at the heart
of everything we do. We drive innovation, research, and development
at our 14 technical centers, with their 20 test tracks. Sales in
2022 amounted to US $ 8.8 billion.
For more information go to www.autoliv.com.
Safe Harbor Statement
This report contains statements that are not historical facts
but rather forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include those that address activities,
events or developments that Autoliv, Inc. or its management
believes or anticipates may occur in the future. All
forward-looking statements are based upon our current expectations,
various assumptions and data available from third parties. Our
expectations and assumptions are expressed in good faith and we
believe there is a reasonable basis for them. However, there can be
no assurance that such forward-looking statements will materialize
or prove to be correct as forward-looking statements are inherently
subject to known and unknown risks, uncertainties and other factors
which may cause actual future results, performance or achievements
to differ materially from the future results, performance or
achievements expressed in or implied by such forward-looking
statements. Numerous risks, uncertainties and other factors may
cause actual results to differ materially from those set out in the
forward-looking statements, including general economic conditions
and fluctuations in the global automotive market. For any
forward-looking statements contained in this or any other document,
we claim the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995, and we assume no obligation to update publicly or
revise any such statements in light of new information or future
events, except as required by law.
The following files are available for download:
https://mb.cision.com/Main/751/3865457/2393884.pdf
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Autoliv Intends to
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