Manitou Group has announced plans to reduce its headcount following the impact of Covid-19 on sales this year.
The France-based manufacturer said it has been facing a downturn trend since mid-2019, following a long period of growth. The economic crisis resulting from the pandemic has amplified the situation, meaning the group now forecasts a decrease in sales of around 30% in its 2020 financial year, compared to 2019.
Manitou’s announcement follows a meeting of its Central Employee Representative Committee yesterday to discuss a reorganisation and adjustment programme, designed to counter the impact of the pandemic.
The company said, ”As soon as the first signs of the crisis appeared, the group implemented a series of health, economic and organizational measures to protect its employees and preserve its financial situation.
”In this continuity, the project presented today to the Central Employee Representative Committee anticipates a reduction of 63 indirect positions within Manitou BF. A period of voluntary leave would be opened in order to limit forced layoffs.”
The company statement continued, “This project, combined with the measures already implemented in other countries where the Manitou Group operates, especially in the United States, India and Brazil, and with the board’s decision to waive the proposal to pay a dividend for the record 2019 fiscal year, will help to preserve the investment capacity required for the group to continue to innovate.”