On the occasion of the recent Annual General Meeting, GEA Group Aktiengesellschaft released first preliminary figures on the Company’s business progress in 2015 and announced a higher savings potential in connection with the ongoing “Fit for 2020” project. Jürg Oleas, Chief Executive Officer of GEA Group Aktiengesellschaft said:
”Based on an in-depth analysis of the current structure of GEA Group as a whole, we have designed the future target organization in line with the blueprint concept presented in August 2014 and identified further potential savings over the past months. The new group structure with fewer levels of hierarchy and less complexity is to be implemented by the end of 2016 so that we will generate minimum savings of EUR 125 million per year as of the fiscal year 2017. Previously, we had anticipated annual minimum savings of EUR 100 million. One-off expenses will also go up”.
”This increase in potential savings is mainly due to the higher level of planned downsizing that currently foresees a reduction of around 1,450 full-time employees. Last year’s preliminary estimates had still suggested a net reduction of 1,000 jobs. GEA’s senior management is engaged in a close dialogue with the employee representative bodies. Negotiations on the procedures governing the implementation of the headcount reduction as well as the cushioning of the ensuing social effects are under way. ”