Lenzing to cut approximately 600 jobs at its headquarters

Austrian fibre producer Lenzing AG has further intensified its cost-saving programme.

The new measures will affect numerous jobs at the headquarters in Lenzing, Austria. “Approximately 300 jobs will be cut, particularly in the administrative sector, with 250 of these to be eliminated by the end of 2025. The aim is to make Lenzing's administrative functions leaner and more efficient,” the group explained in a statement released on Monday. Management expects this to result in “annual savings of at least 25 million euros from 2026 onwards”.

The company also announced that a stronger focus on locations in Asia and North America will lead to the loss of approximately 300 additional jobs in Lenzing by the end of 2027. “Both measures will lead to total annual savings of more than 45 million euros, which will take full effect by the end of 2027 at the latest,” the group explained. The necessary personnel measures will be implemented “in accordance with a new social plan agreed with representatives of the works council at the beginning of September”.

Company responds to difficult market conditions

The company stated that the additional measures are necessary to “ensure long-term competitiveness” in light of the difficult global market conditions in the fibre industry. In addition to the job cuts, Lenzing announced further initiatives to “further increase operational efficiency”. These include “holistic energy optimisation at all production sites”. At the same time, investments totalling 100 million euros are planned for the two Austrian sites, Lenzing and Heiligenkreuz, by 2027.

Overall, the group intends to concentrate even more on high-margin premium fibres. This decision also has consequences: “The management board has decided to initiate a review of strategic options, including a possible sale of the production site in Indonesia,” the company announced. In this context, “impairments of long-term assets, particularly property, plant and equipment, of up to 100 million euros are expected in 2025”.

This article was translated to English using an AI tool.

OR CONTINUE WITH

Lenzing