Lenzing to Cut Up to 600 Jobs by the End of 2027

Lenzing plans to cut another 300 positions over the next two years. The company announced this after the supervisory board meeting on Monday.

Job Cuts at Lenzing: 300 Now, 300 Later

The aim is to "make administrative functions leaner and more efficient" and annual savings of at least 25 million euros are expected from 2026, and 45 million euros from the end of 2027.

The second wave of cuts is "just a relocation," according to the company. The goal is to "strengthen the international presence in Asia and North America." This internationalization is accompanied by the reduction of 300 positions at the Lenzing site by 2027. Additionally, a strategic review of the production facility in Indonesia has been initiated, with possible options including the sale of this production site.

Impairment Requirement Pressures Profit

Accordingly, impairment expenses for long-term assets of up to 100 million euros are expected for 2025. This will negatively impact the consolidated operating profit (EBIT) and the consolidated net income, but will not affect the EBITDA, which will be "above the previous year's level" this year. For 2027, an EBITDA of around 550 million euros is targeted, "provided the market environment does not change and geopolitical stability prevails," according to a statement.

In addition, an investment package for the sites in Lenzing and Heiligenkreuz has been put together, which foresees investments of over 100 million euros by the end of 2027.

(APA/Red)

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