Grundfos to cut 600 jobs
Grundfos has announced a reorganisation that will lead to the loss of approximately 600 jobs worldwide.
The Danish pump maker is organising its sales, marketing, technology and operations functions around four customer segments: Commercial Building Services; Domestic Building Services; Industry; and Water Utility.
Grundfos, which currently employs around 19 000 people, says that it is responding to trends in changing customer needs by reorganising for simplicity and speed, and by investing significantly in innovation and digital capabilities.
“Our strong performance allows us to make these changes from a position of strength. Now is the right time for us to make the changes to put our strategy into action,” said Jens Moberg, chairman of the Grundfos Holding board of directors.
“It will be very sad to see some of our colleagues leave us at this pivotal time, and I would like to thank everyone for their hard work and loyalty,” added Moberg. “We will make sure to care for them as they have cared for us and our customers during their time with Grundfos.”
Grundfos is one of the world’s largest pump manufacturers with an annual production of more than 17 million pump units. Earlier this month the company announced that Mads Nipper will step down as CEO at the end of the year to head up the Danish energy company Ørsted.
In the first six months of 2020, Grundfos saw organic sales decline 8.3%, net turnover fall 6.9% to DKK12.3 billion, and earnings before interest and tax (EBIT) slip 9.3% to DKK1067 million. Profit after tax was DKK756 million, down from DKK1049 million in 2019.
