“Far-reaching” plan includes cutting 1,300 full-time jobs by 2027 and selling major holdings outside of Germany
BayWa has unveiled what it has called a “far-reaching” transformation concept for the company, as it strives to to increase efficiency and profitability by the end of 2027.
In a statement, the Munich-based group said the concept involved organisational streamlining, numerous operational cost-cutting measures and the disposal of international affiliated companies.
BayWa said that it envisaged the sale of ”major holdings” outside Germany.
”The funds released by the sale of the companies are to be used to strengthen the liquidity of the operating business and to repay debt,” BayWa stated.
The transformation will also mean cutting up to 1,300 jobs of its current total of almost 8,000 full-time positions by 2027, with the majority affecting corporate roles.
The company’s regional network had also been assessed in terms of demand and profitability, BayWa explained, with analysis showing that a further 26 of the current total of just over 400 locations could not be operated profitably in the long term, resulting in closure by the end of 2027.
All of these changes would mean a strengthening of operational competitiveness in its core business areas, it stated, ensuring a ”strong position in stable, socially relevant key markets and the trust of its financing partners enable it to restructure independently”.
“The BayWa of 2027 will be a focused, modern trading company with the four core business areas of agriculture, construction, energy and agricultural equipment,” said Michael Baur, CRO and member of the board of management at BayWa.
”To ensure that BayWa can once again benefit from its leading market position in its focus markets, it is essential that we position ourselves as an operationally competitive company.
“The basis for the company’s successful future has now been established with the transformation concept,” he added.
