Printed circuit board giant

AT&S cuts up to 1000 jobs after losses

(Bild: AT&S)

Due to the difficult economic situation, the Austrian listed printed circuit board manufacturer AT&S has to cut up to 1000 jobs worldwide, including up to 250 in Styria. The Group slipped into the red last year. As a result, the cost-cutting program is being intensified. The share price rises.

According to AT&S CEO Andras Gerstenmayer, the job cuts will be a mix of layoffs and the non-replacement of natural departures, such as retirements or fluctuation. The up to 250 jobs affected in Austria are "all in Styria". The company produces in Leoben and Fehring. The remaining up to 750 jobs are mainly in Asia - AT&S operates plants in China.

When asked when he will know exactly how many employees will be affected and where, Gerstenmayer replies: "We will know much more concretely in two months." We have to take a staggered approach and make preparations because: "Everyone is working." So the first step is to see where "processes can be made more efficient".

Up to 250 employees are affected by the job cuts in Styria.

(Bild: AT&S)

It is "necessary to make adjustments in high-wage regions", says the AT&S boss with a view to the increased costs in Austria: "The last four years have brought us 32 percent wage and salary increases in Austria due to the collective bargaining agreements - about three times as much as in Asia."

The intensification of the cost-cutting program has become necessary due to the economic situation. Gerstenmayer: "The 2023/24 financial year was difficult for us and the entire market: inflation, interest rate rises and the multiple crises had a more negative impact on the overall economy than expected." Because people stocked up on cell phones and laptops during the coronavirus pandemic, demand for them has recently fallen - which is also having an impact on AT&S. "People are now traveling more and no longer investing as much in technical equipment. Spending patterns have changed completely."

AT&S CEO Andreas Gerstenmayer

(Bild: AT & S, Kanizaj Marija, Krone KREATIV)

The consequence for AT&S: the bottom line in the past financial year was a loss of 37 million euros, after a profit of 137 million euros in the previous year. Turnover fell by 13 percent to 1.55 billion euros.

The next few months will also be tough. Gerstenmayer: "We have massive price pressure in the industry, which will remain with us for some time to come. In the end, we will also have to make savings with our employees and increase efficiency in order to make ourselves fit and profitable in the future."

Manager is confident about the future
In general, however, the manager is confident about the future: "We are convinced that AT&S is active in the right markets. Computing and electrification will continue to be trends in society in the future, and those who are best prepared will be the quickest to take off again!"

For shareholders - including major investors Hannes Androsch and Willi Dörflinger - there will be no dividend this year in view of the losses. However, the announcements were received positively on the capital markets: The share price subsequently rose by around five percent.