French automotive major Forvia to axe 10,000 jobs over next five years as part of EU FORWARD project

Forvia job cuts Europe: French global automotive supplier Forvisa has announced a significant restructuring initiative as part of its EU FORWARD project. The plan includes cutting 10,000 jobs out of 75,500 in Europe over the next five years. This move comes amidst the company's commitment to enhance competitiveness, streamline operations, and achieve sustainable growth in the European market.

This decision reflects FORVIA's proactive approach to adapting to evolving market dynamics, enhancing operational efficiency, and aligning its workforce with strategic priorities. While the job cuts may seem significant, they are a crucial step in ensuring the company's long-term viability and sustainability in the highly competitive automotive industry.

What is the EU-FORWARD project?

Despite posting impressive financial results for the fiscal year (FY), including a significant increase in sales and adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA), Forvia is embarking on a transformative journey with the launch of "EU-FORWARD," a five-year project designed to enhance the competitiveness and efficiency of its operations in Europe.

The EU-FORWARD project aims to leverage synergies and optimise operational efficiency, allowing Forvia to achieve significantly higher profitability in the EMEA region (Europe, Middle East, and Africa) by 2028. The project also seeks to rebalance the company's regional mix, with EMEA projected to represent 40 per cent of sales and 35 per cent of operating income by 2028, compared to 46 per cent and 22 per cent, respectively, in 2023.

The company reported FY sales of €27.25 billion compared to €24.57 billion the previous year, marking a substantial increase. Adjusted EBITDA also saw a notable rise, reaching €3.33 billion compared to €2.91 billion in the previous fiscal year. Furthermore, Forvia reported a net profit group share of €222 million, a significant improvement from the loss of €382 million reported in the previous year.

Additionally, Forvia achieved close to €1 billion in net debt reduction in 2023, underscoring its commitment to financial stability and resilience.

While announcing these ambitious goals, Forvia acknowledged the need for workforce restructuring to align with the objectives of the EU-FORWARD project. The decision to cut 10,000 jobs in Europe over the next five years reflects the company's commitment to optimising resources and enhancing operational efficiency.

The proposed job cuts are expected to be implemented gradually over the next five years, allowing Forvia to transition its workforce smoothly while minimising disruption to its operations.

Despite the challenges posed by the workforce reduction, Forvia remains optimistic about the long-term benefits of the EU-FORWARD project. By strategically realigning its operations and optimising resources, the company aims to achieve sustainable growth and maintain its position as a leader in the European market.