The Austrian fiber producer Lenzing AG has further tightened its savings program.
The new measures have an impact on numerous jobs at the headquarters in Lenzing in Upper Austrian. “About 300 positions, especially in the administrative area, will be broken down, 250 by the end of 2025, with the aim of designing the administrative functions of Lenzing Lenzing and more efficient,” said the group in a message published on Monday. Management hopes for “from 2026 annual savings of at least 25 million euros”.
The company also announced that by the stronger focus on locations in Asia and North America, around 300 other positions in Lenzing will be lost by the end of 2027. “Both measures lead to overall savings of more than 45 million euros, which will be fully effective at the latest at the end of 2027,” explained the group. The necessary personnel measures would be “implemented in accordance with a new social plan that was agreed with representatives of the works council in early September”.
With the measures, the group reacts to the difficult market conditions
The additional measures are necessary to “ensure long -term, in view of the difficult global market conditions in the fiber industry,” said the company. In addition to the reduction in personnel, Lenzing announced further initiatives to “further increase operational efficiency”. This includes “holistic energy optimization at all production sites”. At the same time, investments of a total of 100 million euros in the two Austrian locations of Lenzing and Heiligenkreuz were planned by 2027.
Overall, the group wants to concentrate even more on margin -strong premium fibers. This decision also has consequences: “The board has decided to check the strategic options, including a possible sale of the production location in Indonesia,” said the company. In this context, “value adjustments for long -term assets, especially in the case of material investments, would be expected in the amount of up to 100 million euros in 2025”.