Kongsberg Automotive announces cost optimization measures

Zurich, October 23, 2023: Kongsberg Automotive (KA) announces measures to optimize costs, right size the company, and enhance its competitiveness. This includes global workforce adjustment, restructuring of its geographic footprint, and other cost optimization measures.

KA’s cost optimization measures are a part of Gear I of the Shift Gear program and of the ongoing strategic review of the company, announced in March 2023.

As a part of this action, KA will reduce its workforce by an estimated 150-200 employees globally.

Additionally, effective January 1, 2024, KA will close its Dortmund, Germany site and will continue to optimize its global footprint.

KA expects annualized savings of EUR 15-20 million during 2024 by these measures.

The initiatives taken will not change the guidance given for the fiscal year 2023.

This is a necessary step to restore KA’s profitability during challenging global economic times.

By taking concerted measures such as right sizing the workforce, and optimization of our geographic footprint, KA aims to significantly lower its operational costs. This gives KA the possibility to refocus the organization and continue to grow in areas where KA excels, while exploring new growth opportunities.

“At KA, we are mindful of market conditions, and are making essential adjustments to align the size and scope of our operations”, says Linda Nyquist-Evenrud, interim President & CEO of KA, adding, “By taking concrete actions to strengthen our competitiveness, we can foster long-term viability and continue to serve our customers satisfactorily.”

“Due to these challenging but essential changes to the organizational structure, teams will be impacted as the company will operate with a leaner workforce. The Global Leadership Team recognizes the efforts of its employees and thanks them for their contributions to KA,” says Nyquist-Evenrud.

About Kongsberg Automotive ASA

Kongsberg Automotive provides cutting-edge technology to the global vehicle industry. We drive the global transition to sustainable mobility by putting engineering, sustainability, and innovation into practice. Our product portfolio includes driver and motion control systems, fluid assemblies, and industrial driver interface products. Find more information at: kongsbergautomotive.com

Media and Communications contact:
Therese Sjöborg Skurdal – Director Corporate Communications
therese.skurdal@ka-group.com 
+47 982 14 059

Investor Relation contact:
investor.relations@ka-group.com

Forward-looking statements

This announcement contains forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "strategy", "intends", "estimate", "will", "may", "should" and similar expressions. The forward-looking statements in this announcement are based upon various assumptions, which in turn may be based on further assumptions. Although Kongsberg Automotive believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors that are difficult or impossible to predict and are beyond its control. Various factors could cause Kongsberg Automotive's actual results to differ materially from those projected in a forward-looking statement. No assurances can be given that the assumptions underlying the forward-looking statements prove to have been correct. Kongsberg Automotive disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.