KKR’s Marelli Plans 1,500 Job Cuts Amid Components Shortage
(Bloomberg) -- Auto parts and accessories maker Marelli Corp. is planning about 1,500 job cuts worldwide in a bid to build a leaner company amid a pandemic-driven components shortage.
Marelli will eliminate about 7.5% of its 20,000 office staff next year in order to align its workforce and costs with industry levels, according to a letter sent by Chief Executive Officer Beda Bolzenius to employees and seen by Bloomberg News. The content of the letter was subsequently confirmed by the company.
Marelli is also planning a wider restructuring that will include ten new business units and six divisions, the letter said, adding that it will also look to strengthen business in China.
Volker Krebs will be appointed chief financial officer while Juan Molla will be named global chief commercial officer, the letter said. Bharat Vennapusa will be the new chief of global operations.
Marelli was formed in 2019, after KKR completed its acquisition of Magneti Marelli from Fiat Chrysler Automobiles NV and combined the unit with existing portfolio company Calsonic Kansei. The company operates about 170 facilities and research and development centers across Europe, Africa, the Americas and Asia Pacific, according to its website.
KKR & Co. is considering a sale of Marelli’s suspension systems business as the private equity firm shifts the focus of the car parts company toward more profitable products, people familiar with the matter told Bloomberg in June.
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