Auto parts supplier Phovia to cut jobs in Europe

Phovia’s announcement comes as suppliers adapt to an auto industry that has not yet fully recovered from the coronavirus pandemic but is in the midst of a transition to electric vehicles that eliminates the need for certain products such as mufflers. This follows job cuts announced by a number of rival companies. .

Phovia’s management team will use artificial intelligence to reduce reliance on interim staff and optimize research and development, with up to 10,000 of its 75,500 positions in Europe to be eliminated by 2028 He said it was possible.

In addition to France and Germany, the company also has locations in the Czech Republic, Poland and Spain.

“All sites are affected, but not in the same way,” Phobia Chief Operating Officer Olivier Durand said at a press conference.

“The European market is weak and we don’t see any improvement in the short or medium term,” Durand said, adding that some of Frobia’s facilities are not operating at full capacity.

“Our industry changes regularly and we know how to adjust our industrial capabilities,” he added.

The plan also aims to reduce Phobia’s dependence on China, where it accounts for 27% of its sales and makes most of its profits.

The company posted a net profit of 222 million euros in 2023, with sales increasing by nearly 11% to 27.2 billion euros.

Phobia, which took on debt as part of its merger with Hella, slashed its debt by nearly 1 billion euros last year to nearly 7 billion euros.

Investors welcomed the company’s announcement, with Forbia shares rising 4.7% in early trading, while the Paris SBF 120 index fell 0.3%.

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