Schindler to cut 2,000 jobs as Covid-19 hits projects
[ZURICH] Swiss elevator and escalator maker Schindler on Friday announced 2,000 job cuts over two years after first-half profit fell more than a quarter, as the Covid-19 pandemic slammed the brakes on projects and a recovery remains years away.
Schindler's net profit totaled 313 million Swiss francs (S$468.9 million), the company said in a statement, down from 436 million Swiss francs a year ago.
Revenue dropped 8.7 per cent to 4.96 billion francs, while orders fell 12.1 per cent to 5.4 billion francs as new installations and modernization projects declined worldwide and are not expected to recover to last year's levels before 2022.
The world's second-biggest lift-maker behind US-based Otis Worldwide has become slightly less pessimistic about its full-year sales outlook, and now expects a decline of up to 6 per cent for 2020, less severe than the previous forecast of a hit of up to a 10 per cent.
Finnish rival Kone expects only a 4 per cent 2020 sales decline, and said it saw Chinese business recovering.
Schindler said its net profit is now seen between 680-720 million francs, down from 929 million francs in 2019, as it takes restructuring costs of up to 130 million francs this year as it begins trimming its 66,000-employee workforce.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
"Adverse conditions have been accelerating over the last few months and that calls for cost adjustment measures along the whole value chain," said Thomas Oetterli, Schindler's CEO. "We need to remain competitive to be able to fulfill our growth agenda. Reducing cost now is essential to secure the long-term health of our company."
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
Marina Bay Sands Q1 profit surges 51.5% to US$597 million on tourism boom
Swiss watch exports plunge as China and Hong Kong demand dries up
Cutting the cord?: Events leading up to Cordlife’s MOH suspension and arrests of its directors, ex-group CEO
Billionaires selling cheap stuff get richer from inflation pain
Amazon to push cashierless shopping tech into more third-party stores, while backing off itself
Japan’s Uniqlo opens Rome store as part of European expansion