Restructuring: VARTA AG to cut around 240 jobs in 2023

After years of strong growth and the associated expansion of production capacities and personnel, VARTA AG will cut around 240 jobs in Germany this year as part of its restructuring. Cuts are to be made at all three German locations Ellwangen, Nördlingen and Dischingen across all areas of the company. VARTA AG currently employs around 4,700 people worldwide.

In March, the company decided on a restructuring programme in order to return to a stable growth course. The global crises had recently weighed on results and made decisive measures necessary. Above all, the massive price increases for energy and raw materials as a result of the global upheavals caused by the war in Ukraine, the long-term consequences of the Corona pandemic on some of VARTA's customers, as well as a dampened consumer mood due to the global crises had an impact on the company.

The savings in the personnel area are part of the restructuring concept. The management has now started talks with the employee representatives on the details of the concept and has concretised the plans. Further rounds of talks on the form of the measures at the individual locations have already been agreed.

Dr Markus Hackstein, Speaker of the Board of Directors of VARTA AG: "We are aware of our responsibility towards our employees and the region and take this very seriously, especially in the current economically uncertain phase. In doing so, we have the clear ambition to shape the specifications of the restructuring plan in such a way that we can secure the future of our company and at the same time retain as many jobs as possible."

The restructuring programme provides for cost savings in the personnel area amounting to around 800 full-time positions across the company in order to make the structures fit for the future. More than 400 of these will be eliminated through the end of temporary contracts, through fluctuation and through reductions at international locations. Around 390 jobs are to be cut in Germany over the next two years. For 2023, the job cuts amount to around 240, and in 2024 a further 150 jobs are to be relocated to VARTA AG's international sites.

About VARTA AG

VARTA AG produces and markets a comprehensive battery portfolio ranging from micro batteries, household batteries, energy storage systems to customised battery solutions for a variety of applications and sets the industry standards as a technology leader in key areas. As the parent company of the Group, it is divided into the segments "Micro Batteries", "Lithium-Ion CoinPower", "Consumer Batteries", "Energy Storage Systems" and "Other".
The "Micro Batteries" segment includes micro and hearing aid batteries, "Lithium-Ion CoinPower" small-format lithium-ion round cells for OEM applications. "Consumer Batteries" represents the business with household batteries, rechargeable batteries, chargers, portable power (power banks) and lights. “Energy Storage Systems" includes energy storage solutions for primarily private, but also for commercial applications. The "Other" segment includes the "Lithium-Ion Battery Packs" and "Lithium-Ion Large Cells" business units (high-performance lithium-ion round cells for industrial applications in the automotive and non-automotive sectors).
Through intensive research and development, VARTA sets global standards in many areas of lithium-ion technology and in micro batteries, making it a recognised innovation leader in the important growth markets of lithium-ion technology and in primary hearing aid batteries. The VARTA AG Group currently employs around 4,200 people. With five production and manufacturing facilities in Europe and Asia as well as distribution centres in Asia, Europe and the USA, VARTA AG's operating subsidiaries are currently active in over 100 countries worldwide.