The restructuring focuses on streamlining the management structures and the corporate and support functions. The global P/L responsibility of the Business Units will be strengthened further. The planned restructuring will affect up to 300 positions group-wide, with approximately half of them in Germany.
Additionally, indirect spend in the fields of sales, general & administration (SG&A) will be reduced by one third, from €90 million in 2012 to €60 million in 2015 as part of the organizational restructuring.
Overall, the SGL2015 cost savings program is designed to achieve a total of €150 million cost savings by the end of 2015, thereof €50 million already realized in 2013.
Dr. Jürgen Köhler, designated CEO, SGL Group: “We are on track with the implementation of our cost savings program SGL2015. With this set of comprehensive measures we will make SGL Group more efficient and stronger, and strategically position the Company for the future. It is our top priority to implement the defined measures in order to generate the planned €150 million in cost savings by end of 2015.”
Strengthening Business Units and streamlining administrative functions
Based on in-depth analyses of the structures and operating processes, a set of measures have been developed to adjust the organization in order to simplify and increase the efficiency of management structures and processes. As already communicated, the Board will be reduced from five to three members in the context of the generation change.
Furthermore, the number of direct reports to the Board of Management will be reduced by almost half to around 20 positions. The Business Units will be given further global P/L responsibility, and the support functions within the Business Units will be streamlined.
However, the Board will supervise the business activities on the basis of the three Business Areas which will continue to exist as reporting segments. The Corporate Functions will also be adjusted and clearly separated in their tasks from the Shared Service functions that support the Business Units.
Focus on socially responsible downsizing
The measures in connection with the organizational restructuring will affect up to 300 jobs across the Group, most of which are located in Europe (240) and about 150 in Germany alone. Another 37 jobs will be reduced in North America and 16 in Asia. Every effort will be made to achieve the necessary downsizing in a socially responsible manner. The available exit options have been developed and agreed with the works council entities.
The cost savings program SGL2015 and the successful refinancing were initiated by the outgoing CEO Robert Koehler, who will leave the Company at the end of this year for reasons of age. Apart from the organizational restructuring the program consists of the optimization of the global production network as well as the streamlining of the Group’s portfolio.
Textiles | On 22nd Oct 2016
The Central government is likely to extend the recently approved Rs...
Apparel/Garments | On 22nd Oct 2016
Reebok, a pioneer in the sporting goods industry, has brought sneaker ...
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016
'Major problem in the textile machinery manufacturing industry is the lack ...
‘The terms eco-friendly and organic are common but everyone perceives them ...
Bolger & O'Hearn
‘The Indian market is interesting and rather persistent in seeking new...
Steve Cole of Xerium Technologies discusses the industry. Xerium is the...
Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...
Voith Paper GmbH & Co. KG
The glass mat industry is growing by five to eight per cent annually. Kai...
"You have to truly understand what your client wants, know her needs, what ...
Label Ritu Kumar
‘Classics will return’ "There are a lot of people wearing western clothes ...
Bridal couture created with rich Indian heritage, exquisite craftsmanship...
Textiles | On 22nd Oct 2016