MAN TRUCK & BUS ANNOUNCES “EXTENSIVE RESTRUCTURING OF THE COMPANY”
The Executive Boards of MAN SE and MAN Truck & Bus SE has informed the Central Works Council of plans that involve an extensive restructuring of the company involving lay-off of 9,500 employees worldwide and perhaps even closing of three production facilities. With these measures MAN Truck & Bus is aiming for better profitability in the long run and MAN focuses on alternative drive systems. To implement the transformation plans the company’s management enters into a dialogue with the Works Council.
Current deliberations involve cutting up to 9,500 jobs across all areas of the company in Germany, Austria and worldwide. This is linked to relocating some of the development and production processes to other sites. It also means that the production site in Steyr and the modification sites in Plauen (bus and coach) and Wittlich are up for negotiation.
Starting from the middle of this decade, MAN says it is set to become one of the leading commercial vehicle manufactures in the field of electric and hydrogen drives. For the near future it expects that “in a few years’ time, it will be virtually impossible to build a successful business model on the technologies and structures of today”. However, before it can continue investing in fields of the future like alternative drives, digitalization, and automation, MAN has to undergo a comprehensive restructuring process. The aim of this process is to improve the company’s results of operations in the long term. The coronavirus crisis has further exacerbated its already strained earnings position: MAN Truck & Bus reported a loss of €387 million in the first half of the year. Man is part of Traton, a subsidiary of the Volkswagen Group. Chief Executive Officer of MAN Truck & Bus SE, Andreas Tostmann, says: "We are facing major challenges as a result of technological change – when it comes to digitalization, automation, and alternative drives. This is why we need to restructure MAN Truck & Bus: to become a lot more innovative, digital, and profitable in the long run."