Autoliv to reduce workforce by up to 11% as part of cost reductions

In a regulatory filing earlier, Autolive announced it is accelerating its global structural cost reductions, particularly within its European operations. These actions support Autoliv’s medium- and long-term financial targets and the company reiterates its full year 2023 indications. Autoliv continues to actively address its cost base to accelerate its journey towards its medium-term targets. The accelerated structural cost reduction initiatives include further optimization of the Company’s geographic footprint and organizational structure, including a substantial reduction of its total direct and indirect workforce by up to 11%. Through these initiatives, Autoliv will simplify its logistics and geographic footprint and intends to close several sites in Europe. These initiatives are expected to reduce up to 2,000 indirect positions globally, or around 11% of Autoliv’s total indirect workforce. Of this, up to 1,000 are expected to be in Europe. All divisions and functions will be impacted by these initiatives and the Company expects the first headcount reductions to occur in 2023. To further drive global productivity and, specifically, direct labor efficiency, the company also intends to reduce its global direct headcount. The company anticipates that this will lead to a reduction of around 6,000 positions globally, or around 11% of total direct workforce, given today’s sales levels as baseline. The company expects to accrue a minor part of the total accrual in the second quarter of 2023. The initiatives are expected to be fully implemented by 2025 and to have a pay-back time of 1-2 years.