Elevator-maker Kone to slash 1,000 jobs, sees recovery in Asia

Published Thu, Jan 26, 2023 · 08:17 PM

FINNISH elevator-maker Kone said on Thursday (Jan 26) it would slash up to 1,000 jobs globally as it cuts costs and it expects demand to pick up in its main market China and elsewhere in Asia this year.

The cuts will save 100 million euros annually from the beginning of next year, the company said, with 150 of the job losses coming from Finland. The cuts represent around 1.6 per cent of Kone’s workforce of 63,277 at the end of 2022.

Kone posted stronger-than-expected fourth-quarter core earnings but its order intake declined more than analysts had expected.

Its October-December adjusted operating profit rose by 1.6 per cent to 365 million euros (S$522 million) from 359.4 million euros a year earlier, beating the 333.6 million expected by 21 analysts in a poll provided by the company.

“In China, we expect markets to start to recover towards the end of the first half as a result of the broad stimulus measures that have already been announced,” chief executive Henrik Ehrnrooth said in a statement, adding the company also expects demand to develop positively elsewhere in Asia-Pacific and in the Middle East.

Shares in the company were up 1.8 per cent following the earnings report in afternoon trade in Helsinki. REUTERS