German component supplier Beru has embarked on a programme of cost-cutting measures in response to a recent decline in earnings.
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In a statement the company said management is responding to increasing pressure on prices, especially in the diesel cold-start technology division, as well as rising material and personnel costs. These have caused a slowdown in turnover growth in the current financial year and there is no sign of a recovery in 2008.
Cost-cutting measures are designed to last five years and include the streamlining of the organisational structure and the optimisation of worldwide production capacities in order to make internal processes faster and more efficient and to place more priority on close contacts with customers.
The press release said that Rainer Podeswa, previously the member of Beru’s executive board responsible for sales and research and development, has left the company.
160 jobs are expected to be cut across the group – around half of them at the four German sites. Beru employs a total of 2,500 people.
In 2008, Beru anticipates additional savings of approximately EUR2.2m, while savings of nearly EUR5m per year are to be realised in the medium term.
During the summer Beru’s chief executive Marco von Maltzan left the company. After this departure the company revised down its revenue projections.
