EINDHOVEN, THE NETHERLANDS – Neways plans to lay off an additional 100 full-time employees as a result of a reorganization at the end of 2020, according to reports.

Total pandemic-related layoffs now stand at 350. The cuts are being made to “adapt the capacity utilization in Germany to the reduced demand from automotive on a structural basis,” the firm says.

The reorganization, also affecting The Netherlands, is expected to be completed in the second quarter.

As a result of reduced demand in automotive, the firm posted 2020 revenue down 10% to €478.6 million (US$578.7 million) and earnings of €144 million, a decline of 12%. Orders were down 23% last year to €225 million.

“2020 was a challenging year, as we saw a drop in demand in automotive due to the Covid pandemic, translating into a decline in both turnover and result,” said CEO Eric Stodel. “The effective strategic spread across various sectors and, in particular, strong growth in semiconductor partly compensated for this. To offset the sharp and abrupt drop in demand in automotive in the spring, we responded quickly through strict control of costs and investments and a strong focus on cash and working capital. In addition, we were able to close better agreements with clients, which greatly improved our inventory position and enabled us to realize a strong positive cash flow. We also immediately scaled down production and reduced working hours.”

Stodel says Covid-19 is still creating uncertainty.

“We do see an increase in order intake in the first two months of this year. Our priority for 2021 is to restructure the organization and operations to align more effectively with our role as system innovator and product lifecycle partner, for which we experience an increasing demand from our clients. We view this as the most important condition if we are to take profitability to a higher level. Strengthening long-term partnerships with clients, standardizing business processes and intensifying knowledge exchange will provide the basis for more profitable turnover and growth on a structural basis.”

Ed.: €1 = US$1.21

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