Schindler to cut 2,000 jobs as a cost optimization program

Schindler reports lower revenue and profit for H1 2020; announces cost optimization program

On Friday, 24 July, Swiss elevator and escalator maker Schindler 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 recovery remains years away.

• Revenue –8.7%, order intake –12.1%, operating profit (EBIT) adjusted –17.7%, net profit –28.2% year-on-year
• Strong cash flow from operating activities at CHF 636 million
• Announcing cost optimization program, including reducing some 2,000 jobs globally over the next two years

For the first half of 2020, Schindler reports 3.1% lower revenue in local currencies. In Swiss francs, revenue decreased by 8.7% to CHF 4 959 million, as numerous currencies depreciated versus the Swiss franc. With the impact of the global recession induced by the COVID-19 pandemic, order intake in the first half of 2020 contracted 12.1% to CHF 5 355 million (–6.6% in local currencies). To preserve its competitiveness, Schindler announces a cost optimization program that will entail reducing some 2 000 jobs globally.
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.
“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,” he added.
The Schindler Group is a Swiss multinational company which manufactures escalators, moving walkways, and elevators worldwide, founded in Switzerland in 1874