VELUX Group announces production workforce reductions
Declining roof window sales has resulted in overstocking and a need to scale back production in European factories.
Since summer, VELUX has seen declining roof window sales due to the difficult macroeconomic situation, which is impacting consumer spending. This has resulted in overstocking and a need to scale back production in European factories. As a consequence of this, VELUX has initiated a process to reduce the workforce in factories in Poland, Denmark, Hungary, Slovakia and Germany. The process may result in up to 430 employees being laid off.
During the last months, several steps have been taken to mitigate the overstocking – including cutting production days and introducing a hiring freeze. Unfortunately, these steps have not been sufficient.
“Consumers are spending less on home improvements and our warehouses are full. Therefore, we need to produce less. Sadly, this means saying goodbye to talented and dedicated people. However, in the current macroeconomic situation, we believe it is necessary to make adjustments now to prepare our business and remain strong for the future,”
Local negotiations underway
Negotiations with relevant authorities and workers councils have begun, to find the best solutions possible for the affected employees. The final number of lay-offs will depend on the outcome of these negotiations and also the availability of national schemes for outsourcing employees or enacting governmental subsidy schemes to support the division of labour.
“A situation like this is never easy and through the local negotiations we will seek to find the best solutions possible to help and support the employees who will be affected by this,”
About the VELUX Group
For more than 80 years, the VELUX Group has created better living environments for people around the world; making the most of daylight and fresh air through the roof. Our product programme includes roof windows and modular skylights, decorative blinds, sun screening products and roller shutters, as well as installation and smart home solutions. These products help to ensure a healthy and sustainable indoor climate, for work and learning, for play and pleasure. We work globally – with sales and manufacturing operations in more than 36 countries and around 11,000 employees worldwide. The VELUX Group is owned by VKR Holding A/S, a limited company wholly owned by non-profit, charitable foundations (THE VELUX FOUNDATIONS) and family. In 2022, the VELUX Group had total revenue of EUR 2.99 billion, VKR Holding had total revenue of EUR 4.29 billion, and THE VELUX FOUNDATIONS donated EUR 181 million in charitable grants.
For more information about VELUX Group, visit velux.com.