Brembo to Lay Off More Than 1,800 Employees
Brake specialist Brembo SpA plans to temporarily lay off up to 1,840 workers to help align production output with falling demand.
Brembo intends to temporarily lay off between 540 and 680 white collar workers and up to 1,160 blue collar workers, according to a report in L’Eco di Bergamo. Brembo is based in Bergamo, Italy. The workforce reduction is occurring in most plants in Italy and in the group subsidiaries. The company already cut 160 jobs as part of the restructuring plan at its Brembo Rassini S.A. de C.V. business in Puebla, Mexico.
The lay-offs are part of an ongoing plan to reduce costs, inventory and investments. The company hopes to reduce costs by €30-40 million ($39-52 million) this year, and has already curtailed or postponed some investment plans in order to limit the impact of the slowdown it is experiencing with its business.
“The company will continue to adopt all the extraordinary measures needed to align production to demand,” Brembo said in a prepared statement, adding that it believes an improvement or at least a stabilization of market conditions does not seem possible before the second half of 2009.
Brembo revenue for the year ended Dec. 31, 2008 was €1.06 billion ($1.39 billion), up 16.3 percent compared to prior year revenue due to recent acquisitions in China, India, Italy, Spain and the United States. Despite the rise in revenue, the brake specialist’s net profit last year slumped 35.2 percent to €39.4 million ($51.4 million).
Brembo operates in 14 countries with 33 production and business sites, and a pool of about 5,800 employees. The company is an OE supplier to Aprilia, Benelli, BMW, Bombardier, Buell, Ducati, Harley-Davidson, Husqvarna, KTM, Moto Guzzi, MV Agusta, Piaggio, Polaris, Triumph, Vectrix and Yamaha.
Submitted by "- Guido Ebert, Dealernews"
Brembo intends to temporarily lay off between 540 and 680 white collar workers and up to 1,160 blue collar workers, according to a report in L’Eco di Bergamo. Brembo is based in Bergamo, Italy. The workforce reduction is occurring in most plants in Italy and in the group subsidiaries. The company already cut 160 jobs as part of the restructuring plan at its Brembo Rassini S.A. de C.V. business in Puebla, Mexico.
The lay-offs are part of an ongoing plan to reduce costs, inventory and investments. The company hopes to reduce costs by €30-40 million ($39-52 million) this year, and has already curtailed or postponed some investment plans in order to limit the impact of the slowdown it is experiencing with its business.
“The company will continue to adopt all the extraordinary measures needed to align production to demand,” Brembo said in a prepared statement, adding that it believes an improvement or at least a stabilization of market conditions does not seem possible before the second half of 2009.
Brembo revenue for the year ended Dec. 31, 2008 was €1.06 billion ($1.39 billion), up 16.3 percent compared to prior year revenue due to recent acquisitions in China, India, Italy, Spain and the United States. Despite the rise in revenue, the brake specialist’s net profit last year slumped 35.2 percent to €39.4 million ($51.4 million).
Brembo operates in 14 countries with 33 production and business sites, and a pool of about 5,800 employees. The company is an OE supplier to Aprilia, Benelli, BMW, Bombardier, Buell, Ducati, Harley-Davidson, Husqvarna, KTM, Moto Guzzi, MV Agusta, Piaggio, Polaris, Triumph, Vectrix and Yamaha.
Submitted by "- Guido Ebert, Dealernews"
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