Falling orders has prompted job cuts.
Keystone Archive
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.
This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo.ch we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles. You can find them here.
If you want to know more about how we work, have a look here, and if you have feedback on this news story please write to english@swissinfo.ch.
External Content
Your subscription could not be saved. Please try again.
Almost finished… We need to confirm your email address. To complete the subscription process, please click the link in the email we just sent you.
This content was published on
Viola Amherd has expressed her “deep shock” at the assassination attempt on Slovakian Prime Minister Robert Fico on Wednesday.
This content was published on
A man injured half a dozen people with knives, two of them seriously, before being arrested on Wednesday in northern Switzerland.
Switzerland to introduce flight passenger database
This content was published on
Switzerland plans to introduce a flight passenger database to collect and process personal data in a bid to combat terrorism and serious crime.
Government plans to invest over CHF16bn in Swiss rail network
This content was published on
The federal government intends to invest CHF16.4 billion ($18.1 billion) in railway infrastructure between 2025 and 2028, CHF2 billion more than for the current period.
Swiss to vote on pension reform and biodiversity in September
This content was published on
Swiss citizens will vote on occupational pension schemes and a biodiversity initiative on September 22, the Federal Council announced on Wednesday.
Ukraine peace talks: 50 countries have confirmed participation
This content was published on
To date, 50 countries out 160 invited delegations have confirmed they will attend the Ukraine peace conference, held in central Switzerland in mid-June, according to Swiss public radio, RTS.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.