Autoliv Intends to Reduce Headcount in France

STOCKHOLM, Oct. 30, 2023 /PRNewswire/ -- Autoliv, Inc. (NYSE: ALV) and (SSE: ALIVsdb), the worldwide leader in automotive safety systems, today announces its intention to reduce its headcount in France as part of the previously announced initiatives to reduce its global headcount and to optimize its footprint. Today's announcement is the final major communication related to the indirect headcount reduction initiative that was announced in June.

Aligned with previous communications, Autoliv continues to adapt and reduce its total workforce and to simplify its logistics and geographic footprint. These actions will significantly strengthen the company's competitive position long-term, adapting it to a substantially lower level of light vehicle production in post-pandemic Europe.

Intended headcount reduction in France

Today, Autoliv announced its intention to reduce its workforce in France by about 20% or approximately 320 employees at its major plants in France. The company aims to initiate these reductions in the first half of 2024 and they are expected to be fully implemented by the end of 2025. The reduction is expected to affect 220 indirect employees mainly in production overhead but also within R,D&E and S,G&A. Additionally, as part of the footprint optimization, Autoliv intends to relocate its steering wheel manufacturing in France to other plants, affecting approximately 100 direct employees.

Specific measures will be defined in compliance with the local regulations and within the framework of a dialogue with elected representatives and the social partners to determine the most appropriate provisions for the employees concerned.

These actions in France are expected to generate savings of around $10 million in 2024, reaching around $20 million in 2025 and around $25 million in 2026 when fully implemented.

The related costs for the headcount reduction will be accrued this quarter. This will not impact the company's adjusted operating margin for the fourth quarter or the full year 2023.

"By these actions, we continue to build our market leadership. Structural cost reductions, simplified logistics and an optimized industrial footprint significantly strengthen Autoliv's competitive position long-term," says Magnus Jarlegren, President Autoliv Europe.

Total cost savings from announced structural cost reduction initiative in 2023

With this announcement, the total announced reductions of direct headcount are around 400 and more than 1,300 for indirect headcount. Total expected annual cost savings from these announcements amount to around $45 million in 2024, reaching $85 million in 2025, and $110 million when fully implemented.