Adient Announces Restructuring Plans In Europe - Quick Facts

(RTTNews) - Adient announced restructuring plans in Europe to reduce operating, administrative and engineering costs, primarily through workforce reductions and the transfer of work to countries with lower labor costs. The company currently expects to record a restructuring charge of approximately $125 million in the second quarter of fiscal 2024, almost entirely related to termination benefits in Europe. Adient estimates that this charge will result in future cash expenditures of a similar amount.

Adient noted that restructuring actions associated with these specific plans will primarily occur in fiscal 2025 and 2026 and are expected to be substantially complete by fiscal 2027. When fully complete, the company expects approximately $60 million in reduced annual operating cost from this activity, of which approximately 80% will result in net savings.