Michigan, April 23: Layoffs continue across the globe regardless of the reason in the tech and automobile industry. After Tesla layoffs implemented to cut costs and Google firing more than 20 people in Israel’s cloud computing project, auto supplier Adient joined the layoffs in 2024 and reportedly let go unspecified numbers of people to cut costs. The reports did not disclose the number of employees impacted by Adient layoffs in 2024.
According to a report by Reuters, Adient layoffs were initiated as a part of restructuring the business and transferring work to countries where the labour costs would be cheaper like Europe. Adient reportedly said it would restructure its European business to cut costs. The auto supplier reportedly had around 70,000 employees worldwide in September 2023. It also mentioned that out % of these Adient employees, 42% of them worked in regions like Europe, the Middle East and Africa. Tesla Layoffs Continue! Elon Musk’s EV Company Cuts 40 More Jobs in US Growth Content Team.
EU Market for EV and Challenges Faced By Region Due to Charging Infrastructure
According to a report by ET Auto, EV purchases in the European Union rose because of subsidies; however, the region lacked the charging infrastructure. It said that Germany, the Netherlands and France had over 70% EV charging points. Moreover, the EU aimed to establish over a million charging stations but fell short. Besides these challenges, Chinese EV companies are posing fierce competition in the market. On the other hand, the EU reportedly had been facing higher input costs that affected the profit margins.
However, were Adient Sale and Production Affected Despite Serving the Biggest Carmakers?
ET HR World reported that the automotive seat manufacturer Adient had been a supplier to the biggest carmakers across Europe. The list of Adient clients includes Volkswagen, Stellantis, BMW, Renault, General Motors, Ford, and Mercedes-Benz. Despite providing seats to such large automobile companies, Adient sales and production suffered due to the UAW strikes in the United States in the first quarter ended December 31. Rivian Layoffs 2024: US-Based EV Company Cuts Nearly 1% of Its Total Workforce in Its Second Round of Layoffs This Year To Reduce Cost Amid Slow Electric Vehicle Demand
Adient Layoffs 2024: How Cutting Jobs Would Impact The Automotive Seat Supplier?
Reuters reported that cutting jobs and implementing restructuring would result in a charge of around $125 million to Adient’s fiscal second quarter. The report highlighted that Adient’s plan would be completed by the fiscal year 2027, with the company likely adding $60 million in reduced yearly operating costs. The report also mentioned that Adient outlined its plan to restructure the business in 2024, reducing the workforce by 13,000 people, in its regulatory filing for the first quarter.
(The above story first appeared on LatestLY on Apr 23, 2024 05:10 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
