March 31, 2012

Heidelberg Reaches Pact with Employees on Reductions

HEIDELBERG, GERMANY—The management board and Workers’ Council of Heidelberger Druckmaschinen AG (Heidelberg) have reached an agreement regarding the implementation of the “FOCUS 2012″ efficiency program. The consensus reached provides for savings on personnel costs, more flexible working time arrangements, and worldwide job cuts that will reduce its current workforce of about 15,500 to fewer than 14,000 by mid-2014.

“The outcome of the negotiations will enable us to adjust capacities to meet demand and achieve the announced savings as planned. In consultation with the Workers’ Council and the IG Metall union, we have devised a responsible concept for making the required cost and capacity reductions on a socially acceptable and sustainable basis through the global job cuts announced,” Heideberg CEO Bernhard Schreier said.

The measures will help achieve the targeted annual savings of around US$240 million from fiscal year 2013-2014. Up to a third of these savings will be realized in fiscal year 2012-2013. The necessary one-off expenditure amounts to approximately US$200 million, most of which will be posted during the current fiscal year.

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