Automotive component manufacturer Brose is initiating job cuts affecting close to 1,000 employees.
The German auto parts provider Brose is contemplating trimming about 1,000 of its 32,000 worldwide workforce, as per its supervisory board chairman Michael Stoschek. Moreover, the company intends to bring in external collaborators. As Stoschek shared with the Frankfurter Allgemeine Zeitung, "Our leadership team is planning to eliminate 950 administrative roles from high-wage locations." He added, "Our production facilities, equipped with advanced automation, aren't operating at full capacity, and this situation can't be rectified in the short term."
Stoschek emphasized the necessity of streamlining the company by reducing hierarchical levels and increasing the scope of responsibilities. Having retired from the family business management in the spring, Stoschek unexpectedly returned as the chairman of the newly established supervisory board, which now has the authority to direct management decisions.
The need for this transformation stemmed from the lack of influence by the owner families on the board. A family-owned enterprise with 32,000 employees and a turnover nearing eight billion euros, Brose is wholly owned by the family, with the Volkmann and Stoschek families each holding a 50% share and Michael Stoschek holding an additional 10%.
This situation is poised to evolve. "Brose is the only large corporation where four individuals shoulder the entire economic responsibility alone," acknowledged Stoschek. "Our aim is to alter this situation in the future and are open to potential partners," he said, further adding, "Whether this move will lead to a joint venture or capital investment, we'll see."
The company is considering reducing its workforce by 1,000 positions, mainly affecting administrative roles in high-wage locations, as they look to operate more efficiently with their large fleet of cars. In the future, Brose might seek external collaborators to change their current structure, where four individuals carry the entire economic responsibility, as Stoschek mentioned.
