Published by Global Banking & Finance Review®
Posted on September 19, 2025
2 min readLast updated: March 1, 2026
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Stabilus plans to cut 450 jobs to maintain profit margins amid challenges in the automotive and industrial sectors.
(Reuters) - German car parts supplier Stabilus is seeing ongoing weakness in both the automotive and industrial sectors, its CEO said on Friday, a day after the company announced cost cuts and layoffs to preserve profitability.
The company said late on Thursday it planned to cut 450 jobs, or 6% of its global workforce, and gave a net profit forecast for this year that was below market estimates.
CEO Michael Buechsner said the company wanted to secure a margin on adjusted earnings before interest and taxes at the same level or above its 2025 target of 11% in the coming years, rising to 15% by 2030.
The European carmaking industry is focusing on cost-cutting as it faces declining prices and profits in its key market China, lukewarm demand in Europe and uncertainty from U.S. tariffs, as well as pressure to shift towards electric vehicles.
"Stabilus group with 11% EBIT margin is on an extremely healthy path, and this is what we want to maintain, whatever it takes," Buechsner said during an investor call.
It will book a provision of around 18 million euros in 2025 from the cost-cutting programme, it said, and expects its net profit this year to reach around 25 million euros ($29.4 million), below an average of 47.1 million expected by analysts polled by Vara.
It confirmed its annual guidance for revenue, margin on adjusted EBIT, and adjusted free cash flow.
Shares in the company were down 5% by 1115 GMT on Friday.
Job cuts will mainly affect the Americas and Europe, the Middle East and Africa - the regions where it has most employees - Buechsner said, while it is eyeing "good growth opportunities" in Asia despite the impact of the global trade war.
The programme, which will bring cost savings of around 19 million euros in 2027 and recurring annual savings of around 32 million euros from 2028, will primarily be implemented next year, Stabilus said.
($1 = 0.8502 euros)
(Reporting by Linda Pasquini; Editing by Jan Harvey)
Stabilus plans to cut 450 jobs, which is about 6% of its global workforce.
The company expects its net profit this year to reach around 25 million euros, which is below market estimates.
Stabilus aims to maintain an EBIT margin of 11% or higher, with a goal to increase it to 15% by 2025.
The job cuts will mainly affect the Americas and Europe, the Middle East, and Africa, where Stabilus has the most employees.
The cost-cutting program is expected to bring savings of around 19 million euros in 2027 and recurring annual savings of about 32 million euros from 2028.
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