Landis + Gyr restructures and cuts 12% of the workforce

The manufacturer of electricity meters Landis + Gyr is restructuring and wants to cut 12% of its workforce. The company, which has 5,800 employees, wants to reduce its costs, she said Wednesday.

For the moment, the number of positions affected in Switzerland remains unknown. ‘This is a global program, all regions and administrative functions will be reviewed. We are currently in the process of evaluating and discussing, ‘a spokesperson told AWP.

Thanks to the restructuring, the organization will be simplified, which will make it possible to be more responsive and closer to customers, the group said in a press release.

‘Our strong balance sheet is a big advantage and we are now focusing on cost management, while our commitments to research and development remain unchanged,’ said Werner Lieberherr, Group CEO.

In addition, this initiative is not directly linked to the coronavirus crisis, it is concomitant with the arrival of the new CEO and a desire to reorganize to be more efficient. There is no imbalance in costs, specifies the spokesperson.

Details of this program, which is due to roll out in fiscal year 2020, will be revealed during the presentation of the half-year results on October 28.

Results impacted by the pandemic

At the last score in May, the company announced a decline in sales and profits during its staggered 2019/2020 fiscal year, which ended at the end of March. The year ended in a shambles with the spread of Covid-19 and the associated economic repercussions.

Due to the uncertain environment, no forecast has been provided for the current year. As a precaution, the board of directors has chosen to make the decision regarding the dividend later, during the presentation of the half-year results.

Regarding the planned projects, none have yet been canceled, said Landis + Gyr. On the other hand, some have been put on hold, notably in the United States. ‘We are nevertheless optimistic to obtain the necessary authorizations for these contracts when the situation improves. It depends on the evolution of the pandemic ‘, explained the spokesperson.

Either way, liquidity is strong. Despite low debt, the company opened a new $ 350 million line of credit, to be prepared for any eventuality.

/ ATS

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