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Ansbach, February 13, 2024 - OECHSLER AG, a leading plastics technology company with a global presence and headquarters in Ansbach/Middle Franconia, today announces its newly launched transformation program. The program, internally known as BE:FOCUSED, encapsulates the company's goal for the forthcoming transformation phase: to streamline structures, simplify the organization, and centralize operations. Additionally, unnecessary hierarchies will be eliminated, and team sizes will be reduced. BE:FOCUSED aims to enhance workplace appeal by offering improved career prospects and broader local and global opportunities at OECHSLER. This initiative is intended to attract talented individuals to the company amidst a shortage of skilled workers.
A structure with three divisions and centralized production
The new corporate structure will now focus on three business units (BU) aligning with the company's strategic market opportunities: Mobility, Innovative Solutions, and Health. OECHSLER has decided to discontinue its Sporting Goods business and will only engage in sales in China in this sector if favorable opportunities arise. China will serve as a supplier base for multinational clients in the region. Enhanced collaboration with Chinese toolmakers and utilizing their production capacities will enhance efficiency and optimize the product range for customers. Additionally, adjustments are expected in the realm of additive manufacturing.
OECHSLER will centralize worldwide production and its management under one roof. The plants within the global group will focus on enhancing production efficiency. Sales responsibilities for regions and countries where OECHSLER operates will now be coordinated centrally at the company's headquarters in Ansbach, rather than being managed locally at the plants. The three German locations of OECHSLER will continue to play a significant role.
"With BE:FOCUSED, we are launching an extensive investment program for our successful future. Over the past few months, we have analyzed very intensively how we can return to a profitable growth path in the long term. We too have been navigating increasingly stormy waters for several years due to changing market conditions, geopolitical changes and increased competitive pressure from our customers. For this reason, we will reorganize ourselves and set the right course again with BE:FOCUSED," stated Karl Ostler, CEO of OECHSLER AG, emphasizing the crucial nature of the impending transformations.
Employee requirements are evolving, making job cuts inevitable
This significant transformation will bring about changes in both employee expectations and corporate culture. The goal of BE:FOCUSED is to streamline OECHSLER, making it more efficient and adaptable. This will involve deploying resources where needed at specific times, based on the company's management identifying more profitable business opportunities. Consequently, job roles will adjust to meet these demands, leading to the creation of new positions as well as job reductions. The restructuring into three new business units and a centrally managed production organization will drive many of these changes. OECHSLER foresees the necessity of eliminating up to 220 positions across all locations, with approximately 135 jobs affected at the three German sites in Ansbach, Weißenburg, and Brodswinden. The company aims to explore options such as partial retirement, early retirement, and voluntary programs where possible.
"We understand that ultimately, it's about people and not just "jobs." Therefore, we will proceed with caution. Unfortunately, some colleagues will have to leave the company. We shared our plans with the General Works Council early on and in a transparent manner. I want to express my gratitude to our works council members for their positive discussions. They have passionately represented our employees' interests and acknowledged the necessity for action. This has allowed us to achieve an agreement and promptly provide clarity for our colleagues," says Karl Ostler, CEO of OECHSLER.
The Management Board has communicated the goals and impacts of the transformation program to the employees at all three sites in Germany today. Similar informative sessions will take place at the company's global locations in the upcoming days.
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