The key Swiss company Dormakaba is implementing the announced austerity program and cutting 183 jobs in Switzerland. That is more than one in six jobs in Switzerland. The group employs around 930 people in this country and around 16,000 worldwide. The workforce was informed about the reductions on Tuesday.
Due to the savings program announced in July at the locking technology group Dormakaba, 183 jobs will be cut in Switzerland within three years. The group operates four locations in Switzerland: Rümlang ZH, Wetzikon ZH, St. Gallen and Le Mont-sur-Lausanne VD. These should all remain open.
Legend: The famous “Kaba” key is made by Dormakaba. Keystone/CHRISTIAN BEUTLER
The austerity program had already been announced in July. At that time it was said that 170 million francs would have to be saved worldwide. At the time, there was talk of 800 full-time positions company-wide. It is now clear what this means for Swiss employees.
Dormakaba is one of the three largest key corporations in the world. Before the job cuts, the company employed 16,000 people in 130 countries. The company is particularly known for its “Kaba key”.
Relocation to Bulgaria
According to the information, the planned job cuts will mainly affect the areas of product development and production. Product development, which is based at the two largest locations in Rümlang and Wetzikon, is now to be “focused” and parts are to be relocated to Sofia in Bulgaria. In the production area in Wetzikon, the job cuts are taking place as part of measures for continuous rationalization and automation that have been in place for years, it goes on to say.
The company is very interested in finding “optimal solutions for all affected employees,” emphasizes Dormakaba. For example, it offers external outplacement advice, internal job placements and support for affected employees in the application process. In addition, job cuts will be implemented through natural fluctuation or retirement whenever possible.
Annual savings
The primary aim of the planned savings of 170 million francs is to be able to achieve the company’s medium-term financial goals. Dormakaba is aiming for annual organic sales growth of 3 to 5 percent and an operating profit margin of 16 to 18 percent by the 2025/26 financial year.