Oerlikon cuts jobs, replaces CEO

Technology group Oerlikon is cutting around 2,500 jobs and removing its top executive after posting poor results for the first half of 2009.

The Zurich-based firm said on Tuesday that its textile division dragged overall sales down 40 per cent to SFr1.4 billion ($1.32 billion) from the previous year.

Uwe Krüger, its chief executive officer since 2007, will leave the company immediately. Oerlikon’s board of directors has nominated Hans Ziegler, a fellow board member, to replace him.

It said it would accelerate its restructuring process, which is expected to save it up to SFr400 million. Approximately 2,500 positions will go and hours will be cut on thousands more.

“Our decision was made in light of OC Oerlikon’s semi-annual results,” said chairman Vladimir Kuznetsov in a statement.

“The company urgently needs to secure coordination of strategic portfolio decisions with operational measures of OC Oerlikon’s businesses. The announced management change ensures the alignment of the company’s strategy with the interests of all stakeholders.”

The company, which netted a first-half loss of SFr99 million, already cut 1,500 positions in the first half of the year. It plans to return to profitability in 2010.

Oerlikon reported sales in its textile division, which have been in decline since 2007, fell a further 55 per cent to SFr420 million over the first six months of the year. New orders were down 47 per cent to SFr476 million.

The unit, which makes machines for textile factories, has already consolidated three production sites in Germany, reduced its headcount of approximately 700 around the world and shortened working hours.

Oerlikon makes a range of products from coatings used in Formula One racing cars to machines used to make solar cells.

swissinfo.ch and agencies