According to foreign media Reuters, in order to compete with Asian competitors and increase product gross margin, Austrian lighting manufacturer Odenburg Lighting plans to cut 600 jobs, accounting for 8% of the company's total number of positions.
The company hopes that this will help double the profit from 2016 to 2017. At the same time, in order to reduce expenses, Uldwig Lighting CEO Ulrich Schumacher said at an investor briefing on April 2: "The company now has only two roads, whether to close the US production line, or to seek new partners. â€
Ulrich Schumache said the layoffs plan will be implemented gradually through mergers of factories and sales departments in the coming quarters. According to him, the restructuring plan is expected to increase EBIT (earnings before interest and taxes), from 4% in 2014 to 5-6% in 2015, and 2016-2017 is expected to increase to 8-10%.
European lighting producers, including Osram, Philips and Fort Ordburg, have recently plunged into a hand-to-hand battle with Asian rivals. Unlike Asian manufacturers such as Samsung Electronics and Toyota Synthes, they are experiencing a transition from traditional lighting business to new LED lighting.
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