Autoliv Looks to Reduce Headcount by 20% or 320 Employees at its Major Plants in France, Likely to Save $10M in 2024, $20M in 2025 and $25M in 2026
Portfolio Pulse from Benzinga Newsdesk
Autoliv, Inc. (NYSE:ALV) plans to reduce its workforce in France by about 20% or 320 employees as part of its global headcount reduction initiative. The reductions will begin in 2024 and are expected to be fully implemented by the end of 2025. The company expects to save around $10 million in 2024, $20 million in 2025, and $25 million in 2026 from these actions. The related costs for the headcount reduction will be accrued this quarter but will not impact the company's adjusted operating margin for the fourth quarter or the full year 2023.
October 30, 2023 | 10:49 am
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Autoliv's planned workforce reduction in France is expected to save the company significant amounts over the next few years. However, the costs associated with this reduction will be accrued this quarter.
While the workforce reduction will result in significant savings for Autoliv, the costs associated with this reduction will be accrued this quarter. This could potentially have a short-term negative impact on the company's financial performance. However, the company has stated that this will not impact its adjusted operating margin for the fourth quarter or the full year 2023, suggesting that it has factored these costs into its financial planning.
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