ABB plans layoffs, halts production at U.S., Swiss factories
ABB has announced that it will be restructuring parts of its North American and European operations as it responds to its global power grid operations’ sluggish profitability.
According to Reuters and STL Today, 120 employees will lose their jobs at the production facility in St. Louis, U.S. as ABB will discontinue production of transformers at this location. Instead, production will be shifted to South Boston.
Meanwhile in Geneva, Switzerland, 100 jobs are being axed at ABB’s Secheron plant with production of traction transformers moving to a site in Lodz, Poland over the next three years.
ABB has stated that increasing competition and challenging market conditions are the reasons for these shifts as ABB’s Power Grids division has seen a nine per cent drop in orders over the last year.
Comparatively, profit margins for Power Grid stand at 9.9 per cent, lagging behind the company’s other businesses and its group margin of 12.5 per cent, according to stltoday.com.