EMCC European Monitoring Centre on Change



Geographic Location

Country: World
Location of affected unit(s): Germany, UK, World


Sector: Manufacturing
Manufacture of electrical equipment
27.4 - Manufacture of electric lighting equipment
Number Employed: 7194
Group: Zumtobel

Employment Effects

Announcement Date: 02-04-2014
Planned Job Reductions min: 600
Planned Job Reductions max: 600
Type of Restructuring: Offshoring/Delocalisation
Employment Effect Start: 01-04-2014
Foreseen End Date: 31-03-2015
Direct Dismissals: 600

Additional Information

The Austrian lighting manufacturer Zumtobel has announced plans to reduce its global workforce of 7,194 jobs by 600.

The redundancies were announced as part of Zumtobel's plans to save costs and double its profitability in the 2014/15 financial year. This is to be achieved by combining the purchasing and distribution structures of its two brands, Zumtobel and Thorn, and by restructuring its industrial production network.

In its 2014/2015 financial year Zumtobel is indeed planning to reduce the size of, close or sell four to six of its 18 factories worldwide. It has not been disclosed yet which factories will be affected. It is foreseen that job losses will be mainly concentrated in Germany and the UK, whilst the company has given assurances that jobs in Austria will not be affected. 150 of the foreseen job cuts will be in sales, whilst the remaining 450 will be in production plants. The company plans to finalise and start implementing the restructuring plans by the first quarter of 2014/15.

The company plans to transfer part of its production in Europe to Asia, in particular to the Chinese factories in Tianjin, Guangzhou and Shenzhen.