EMCC European Monitoring Centre on Change

ADAC

Company/Organisation:
ADAC

Geographic Location

Country: Germany
Region: München, Kreisfreie Stadt; Oberbayern; Bayern
Location of affected unit(s): München

Company

Sector: Transportation / storage
Transportation and storage
52.2 - Support activities for transportation
Number Employed: 3500

Employment Effects

Announcement Date: 15-09-2017
Planned Job Reductions min: 274
Planned Job Reductions max: 274
Type of Restructuring: Internal restructuring
Employment Effect Start: 15-09-2017
Foreseen End Date: 31-12-2020
Other Job Reduction Measures: 274

Additional Information

On 15 September 2017, the German automobile club ADAC announced it will cut 350 to 400 jobs at its headquarters in Munich. ADAC representatives stated that cost reductions were required to ensure the survival of the automobile club, as costs are expected to exceed annual revenue by 2020.  

ADAC wants to avoid operational terminations and plans to reduce jobs through partial retirement programmes, natural fluctuation, compensation offers and transfers.

As of September 2017, ADAC has 3,500 employees in Munich tasked with running the automobile clubcar insurance, car rental and publishing activities.

 

UPDATE 5 December 2017:

On 5 December 2017 ADAC confirmed that the automobile club will only be cutting 274 jobs in Munich until the end of 2020. This comes after management and employee representatives were able to find a compromise, which intends to achieve the job reduction by natural fluctuation, generous compensation offers and transfers within the company. All in all these measurements will save ADAC €80 million, which is still €90 million shy of its goal of €170 million.