Swedish automotive safety supplier Autoliv announced that it would cut its global workforce by up to 6 000 employees (11%). One thousand of these are expected to be in Europe. The worldwide leader in airbags and seatbelts says these cuts aim at reducing costs in the face of inflation.

Autoliv is a significant actor in automotive safety. It pioneered the seatbelt in the 50s, and now the Swedish company is the worldwide leader in airbags and seatbelts. However, inflation is also affecting its day-to-day activities. In the first quarter of 2023, Autoliv’s sales rose by 17% to $2,5 billion, but its net profit fell by 11% to $74 million.

6 000 job cuts

All around the world, Autoliv is now planning job cuts to reduce its costs. Around 6 000 employees will be laid off, accounting for about 11% of Autoliv’s global workforce. Of this, up to 1 000 are expected to be in Europe, where the safety supplier is active in Romania, Poland, Hungary, and France.

“These initiatives will continue to optimize our geographic footprint for a more effective structure to serve our customers best while reducing costs and driving long-term improvement in margins and cash flow. We intend to simplify and consolidate how we operate in all areas of the headcount reduction,” said Mikael Bratt, President and CEO of Autoliv.

From 2023 to 2025

Autoliv’s CEO further indicates that these cuts will affect people based in offices, technical centers, and plants, including leadership positions at all levels. The first reductions are expected to occur in 2023, with full implementation by 2025.