GEA restructure could mean 1,000 job losses21st August 2014
Under its Fit for 2020 initiative, GEA plans to form two business areas – Equipment and Solutions – with sales and services being bundled into one organisation per country. With administrative functions being streamlined and centralised, GEA expects to save at least €100m by the end of 2017.
A company statement says that following the recent divestiture of its heat exchanger business, GEA is sharpening its focus on the customer industries food and beverages from which the group meanwhile receives about 75% of its order intake.
“With project “Fit for 2020”, the target is to achieve annual cost savings of at least €100m by the end of 2017,” says the statement. “Based on today’s business volume, the implementation measures will include world-wide personnel capacity reductions of approximately 1000 full-time equivalents over the next 2-3 years. However, the exact number of adjustments, the timeline and affected locations are subject to further analyses during the “Blueprint Detailing” phase. Personnel-related measures will be discussed in a timely and adequate manner with the relevant employee representatives.
The changes will take place during 2015.
GEA sells heat exchanger interest for €1.3bn – April 16, 2014
GERMANY: GEA has sold its heat exchanger business to private equity firm Triton for €1.3bn. Read more…