Alstom, the French maker of high-speed trains, announced on November 15, 2023, that it would appoint a new chairman and cut 1,500 staff.
The company is also seeking to reduce its net debt by €2 billion ($2.2 billion) by March 2025. As of Sept. 30, it had a net debt of €3.43 billion.
The moves are part of a broader restructuring plan that Alstom hopes will help it to improve its profitability and competitiveness. The company has been struggling in recent years due to a number of factors, including rising costs and increased competition.
The new chairman, who has not yet been named, will be tasked with overseeing the implementation of the restructuring plan. The company is also looking to sell its rail signaling business, which could generate up to €1 billion in cash.
The job cuts are expected to affect employees in a number of different locations, including France, Germany, and the United Kingdom. The company is offering affected employees severance packages and outplacement services.
Alstom is not alone in its struggles. The global rail industry is facing a number of challenges, including the rising cost of energy and the increasing popularity of air travel. However, Alstom is hoping that its restructuring plan will help it to weather the storm and emerge stronger in the long run.
Here are some additional details about Alstom’s restructuring plan:
The company is aiming to achieve cost savings of €400 million ($440 million) by 2025.
Alstom is also seeking to increase its operating margin to 7-9% by 2025.
The company is planning to invest €2.5 billion ($2.75 billion) in research and development over the next three years.
Alstom’s restructuring plan is a major undertaking, but the company is confident that it is necessary to ensure its long-term success.
The job cuts are a difficult decision, but Alstom believes that they are necessary to improve its competitiveness. The company is also optimistic that its new chairman will be able to provide the leadership that it needs to execute its plan.
Only time will tell whether Alstom’s restructuring plan will be successful. However, the company is taking the right steps to improve its chances of success.
The appointment of a new chairman and the planned job cuts are clear signs that Alstom is determined to turn things around.