Seating supplier Adient plans European job cuts as part of restructuring plan

Seating supplier Adient is cutting jobs in Europe and transferring other roles to countries with lower labor costs, becoming the latest parts maker to eliminate positions in the region.

In an April 22 filing with the U.S. Securities and Exchange Commission, Adient said its restructuring plan is aimed at reducing its operating, administrative and engineering costs in Europe. It said it began to implement the plan on March 31 and notified affected employees earlier in the day on April 22.

The number of affected workers was not disclosed. A request for comment from an Adient spokesperson was not immediately returned.

"These restructuring plans are being implemented in response to structural changes occurring in the European automotive market and to ensure Adient maintains a competitive cost structure by reducing labor costs and increasing efficiencies," the supplier said in the SEC filing.

The restructuring is one of several that Adient has outlined over the past several fiscal years. The plans included total job cuts of around 13,000 employees and the closures of 26 plants. Adient said in a quarterly regulatory filing in February that it separated with about 11,000 workers as of Dec. 31 and that 22 of those plants had closed.

The company says it employs around 70,000 people in 29 countries and owns more than 200 plants worldwide.

Adient is the latest supplier to announce job cuts in Europe amid economic headwinds in the region and the impact of automakers insourcing parts production during the shift to electrification. Forvia, Bosch and Continental are among the several major auto suppliers that have signaled they will cut thousands of jobs in the region.

Germany's automotive industry could be particularly impacted by the cuts, with as many as 1 in 4 jobs in the automotive supply chain being lost there by the end of the decade, according to some industry experts.

Adient said it expects to record a $125 million restructuring charge, largely driven by the cost of termination benefits, when it reports earnings for the second quarter of its fiscal year on May 3. The charge comes after it posted a $125 million loss in revenue and a $25 million reduction in earnings in the first quarter, ended Dec. 31, because of the UAW strike.

The company expects to complete its European restructuring plan by 2027, with most actions taking place between 2025 and 2026. It anticipates about $60 million in reduced annual costs from the restructuring.

Adient, based in Plymouth, Mich., ranks No. 21 on the Automotive News list of the world's largest suppliers, with global sales to automakers of $14.1 billion in 2022.