Implementation of the cost cutting program will eliminate of up to 3,000 jobs in Germany and 950 abroad. MAN said it would reduce its workforce in a “socially responsible manner” but did not rule out making compulsory redundancies.
Some of MAN’s key business areas, notably cruise ships, have been badly hit by the economic impact of the Covid-19 pandemic and management does not expect to see a recovery to pre-crisis levels until 2023. Speaking to shareholders, Dr. Uwe Lauber, CEO of MAN Energy Solutions said: “We need to prepare ourselves for a market environment that will remain difficult for a long period of time.”
The restructuring plan is meant to address the current weaknesses, the CEO said and “make lasting improvements to MAN Energy Solutions’ ability to respond to market fluctuations.”
Below target earnings
Dr Lauber underlined MAN had already “begun to combat” such negative market influences in recent years, and the introduced measures helped to meet revenue targets.
“In terms of earnings, however, we haven’t yet reached our goal,” he said, “Therefore, increasing our profitability and improving our competitive ability is key to continue successfully implementing our strategy for the future.”
In 2018, MAN adopted a new strategy of transforming the company from a component supplier to provider of sustainable energy solutions. These new solutions are meant to account for 50% of its business by 2030.