Autoliv, Inc. (ALV) said the company is accelerating global structural cost reductions, particularly within its European operations. The initiatives include a reduction of total direct and indirect workforce by up to 11%. Autoliv will simplify logistics and geographic footprint and plans to close several sites in Europe. The initiatives are expected to reduce up to 2,000 indirect positions globally. Of this, up to 1,000 are expected to be in Europe. The company expects the first headcount reductions to occur in 2023.
Autoliv also plans to reduce its global direct headcount. The company anticipates that this will lead to a reduction of around 6,000 positions globally, or around 11% of total direct workforce.
Autoliv expects to accrue a minor part of the total accrual in the second quarter of 2023. The company expects the initiatives to be fully implemented by 2025 and to have a pay-back time of 1-2 years.
Autoliv reiterated its 2023 outlook indications from April 21, 2023, of around 8.5-9.0% adjusted operating margin and operating cash flow of around $900 million. The company said its cost reduction actions support medium- and long-term financial targets.
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