Rieter to cut another 400 to 600 jobs
The Swiss spinning machine manufacturer Rieter announced extensive job cuts in July. Now, as has also been promised, significantly more jobs are to be cut. The reason is the still poor order situation.
Due to the current market situation, further market and volume-related adjustments are necessary, Rieter announced on Friday. This means that 400 to 600 jobs are likely to be lost, primarily in production. How high the actual reduction will be depends on the further development of orders.
This means that a total of up to 900 jobs will be lost at the Winterthur-based group. In July, the reduction of around 300 jobs, primarily in overhead functions, in Winterthur and Ingolstadt was communicated with the reference that 400 to 600 more could be eliminated. In the middle of the year, Rieter employed 5,555 people worldwide.
Rieter’s order situation remains weak: in the first nine months, sales increased by 11% to CHF1.09 billion, but incoming orders fell by 58% to CHF452.2 million. Analysts had expected a less significant decline.
In particular, demand for new machines has collapsed, while business with components and spare parts is developing somewhat better, it said. The decline does not come as a surprise; analysts had expected it after orders had already collapsed in the first half of the year.
In the meantime, the group is sticking to the goals it has set for the year as a whole: Rieter wants to achieve sales roughly at the same level as the previous year, in the region of CHF1.5 billion. In addition, an operating profit margin (EBIT) in the range of 5 to 7% is targeted.
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