Automotive supplier - Headlamp manufacturer Hella cuts jobs
Due to the weak automotive market and high costs, Hella is forcing the pen at its Lippstadt location. The company announced on a Wednesday in the Westphalian city that it plans to cut 420 jobs there by mid-2026. This concerns the plant at the company headquarters, which currently employs around 1000 people and incurs losses. In the future, only headlights will be manufactured at the Lippstadt site, while the production of rear lights and interior and body lighting will be transferred to other European Hella locations. The production level must be increased and the cost basis must be reduced at the Lippstadt plant in order to boost competitiveness, according to the company.
The job cuts are said to be "as socially acceptable as possible." In response to a question about whether there would be compulsory layoffs, a company spokesperson said that negotiations with employee representatives would be held promptly and "a solution acceptable to all parties" would be sought.
The company, which celebrated its 125th company anniversary two weeks ago, has a global workforce of around 37,500, of which approximately 8000 are in Germany and 4200 in Lippstadt. The French automotive supplier Faurecia took over around 82% of Hella's shares at the beginning of 2022, resulting in the joint roof company Forvia. The German company is called Forvia Hella on the stock exchange, its legal name being Hella GmbH & Co. KGaA.
Statement from Forvia Hella
- Despite the challenging car market and higher expenses, Hella KGaA Hueck & will be using a red pencil to make adjustments at its Lippstadt location in North Rhine-Westphalia, aiming to reduce costs and increase competitiveness.
- Initially, Hella in Lippstadt was a hub for manufacturing various car lighting components, but with the restructuring plan, only headlights will be produced locally, while rear lights and interior and body lighting will shift to other European branches of Hella.
- With its headquarters in Lippstadt, Germany, Hella KGaA Hueck &, now part of the joint venture Forvia, employs around 4200 employees there, and the company is committed to conducting this restructuring process responsibly and in agreement with its workforce, maintaining a socially acceptable approach to the mandatory job cuts.
