Icelandic processing equipment firm Marel has announced plans to reduce its global workforce by 5% in order to improve its operational performance, which it says has fallen “below expectations”.
Marel has estimated the headcount reduction will result in an annualised cost saving of €20 million, with a one-off cost of around €10 million.
While its preliminary and unaudited financial results for the second-quarter 2022 showed a new record in terms of orders received (€472 million), as well as increased revenues of €397 million, its EBIT margin was 6.3% against 11.8% in Q2 2021.
“In light of continued supply chain disruption and inflation at high levels leading to slower ramp up of revenues than originally planned, Marel is taking firm actions to improve operational performance towards the year-end 2023 targets,” it said.
