Kongsberg Automotive announces €15 Million Annual Cost-Cutting Plan
Kongsberg Automotive has just announced a major change. The Kongsberg Automotive cost-cutting plan includes €15 million in yearly savings. The company plans to cut €15 million in yearly costs. This step includes removing around 150 jobs, marking one of the biggest Kongsberg Automotive layoffs to date. It’s not the first time they’ve taken such action, but this one feels bigger.
Why now? Truck sales in the U.S. and Europe are down. The truck market slowdown has made business tough. Add rising tariffs and global tensions, and we can see why Kongsberg Automotive is tightening its belt again.
As we look deeper, this isn’t just a story about €15 million job cuts. It’s part of a 2025 restructuring strategy. The company wants to stay strong and grow, even when the market isn’t on its side. Explore what the new plan means, why it matters, and what comes next for workers, investors, and the future of this global automotive supplier.
Timing and Scope
This Kongsberg Automotive cost-cutting plan began in May 2025. We aim to finish most work by year‑end. Some actions may stretch into Q3 2026. It covers cuts in direct labor, support roles, and back-office functions, similar to earlier rounds.
Market Drivers
Truck sales are weak. We see lower demand from key markets. U.S. tariffs and global tensions are hurting margins. That forced us to revise down our H2 2025 outlook, a key signal of how the truck market slowdown is impacting suppliers.
What’s Behind the Push
In Q1 2025, EBIT tumbled from €10.1 million to just €2.2 million. Free cash flow was negative €10.5 million. We had earlier cuts in Q4 2024 that saved €10 million. Now, this new €15 million move builds on that. In 2023, cuts reached €17 million. These numbers explain the urgent need for this 2025 restructuring strategy.
Financial Health
We are under pressure. Moody’s downgraded our outlook to negative. They pointed to high debt and slim profitability. But we still have €74 million in cash and a revolving credit line. We expect operations to generate €20 million in 2025. The Kongsberg Automotive cost-cutting plan is aimed at stabilizing finances for the long term.
Strategic Angle
This move isn’t just a reaction. We want to reach an 8.5%+ EBIT margin and hit €1 billion revenue by 2028. In March, Trond Fiskum returned as CEO. He has experience with business turnarounds. We also won new contracts in EV systems and India plant deals. These will help us cut costs and grow as part of our future growth plans.
Risks and Concerns
We need to make cuts smartly. Small mistakes could hurt quality or morale. The truck market might stay weak. Tariffs could shift again. These are real risks if we don’t execute the 2025 restructuring strategy well.
Looking Ahead
We’ll update investors on August 12 during our Q2 2025 earnings update. We’ll report progress on savings, workforce changes, and market trends. Key things to track are margin gains and whether truck demand improves.
Conclusion
We from Kongsberg Automotive are taking tough but needed steps. Cutting €15 million and reducing jobs is painful. But it may help us stay strong till the market recovers. If all goes well, this could set us up for a stronger future and a more stable global automotive supplier.
FAQS:
Kongsberg Automotive is a public company. That means it is owned by many people who buy its shares on the stock market, not by one single person.
Kongsberg Automotive makes parts for cars, trucks, and other vehicles. They build things like seat systems, gear shifters, and other tools to help vehicles run better.
The mission of Kongsberg Automotive is to make driving safer and more comfortable. They focus on smart designs, strong quality, and helping customers all over the world.
Disclaimer:
This content is for informational purposes only and not financial advice. Always conduct your research.