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Component maker Huber + Suhner in Herisau implemented fewer sales and received fewer orders in the first nine months than in the same period last year. In the third quarter, however, the downward trend slowed. However, jobs are now being cut, 100 of them in Switzerland.
Component maker Huber + Suhner implemented less in the first nine months and received fewer orders than in the same period last year. Now 250 jobs are being cut around the world.
(sda / awp / mg)
Appenzell-based Huber + Suhner is cutting 250 jobs around the world. The location in Brazil will even be completely closed. The reason is the drop in sales due to the corona pandemic.
Sales fell in the January-September period by 13 percent to 563.3 million francs. Adjusted for the influences of the price of the currency and copper, as well as for the effects of the portfolio, the negative was 12.3 percent, as announced on Thursday by the specialist in electrical and optical connection technology. Orders received fell 9 percent to 571.0 million francs in the reporting period.
Compared to the first half, the situation in terms of sales has improved somewhat. Because after six months, the decline in organic sales was still 15 percent. A look at the main markets shows that the communications market has been the one that has contributed the most to the percentage recovery since the first half of the year, while the evolution of the transport and industrial markets remained practically unchanged compared to the same period of the previous year.
250 job cuts
The situation in relation to dealing with the corona pandemic has largely stabilized in the third quarter, according to the announcement. However, the level of business in the most important markets is still slightly below the volumes forecast before the outbreak of the pandemic. The company only expects a gradual recovery that should continue until next year.
Consequently, the need for action was identified when reviewing structures with respect to the new framework conditions. In accordance with this, the company will reduce its workforce across the group by 250 positions by mid-2021, 100 of which will be in Switzerland. Jobs will be eliminated in both production and administrative areas. The low-income location in Brazil is closed.
The reduction in Switzerland will be staggered, mainly through natural fluctuations and early retirement. Individual dismissals cannot be ruled out. Together with the measures already in place, Huber + Suhner expects annual cost savings of between 15 and 20 million francs if the structural measures are fully implemented.
