BayWa's transformation: Clear focus on core business and customers

BayWa AG presents far-reaching transformation concept Implementation of extensive measures to increase efficiency and profitability by the end of 2027 Job cuts of approx. 1,300 full-time positions planned by the end of 2027 Job cuts will primarily take place in the corporate functions, BayWa AG will maintain a strong presence in the regions Sale of major holdings outside Germany envisagedBayWa AG presents a far-reaching transformation concept to lead the company into a sustainable future. The concept envisages organisational streamlining, numerous operational cost-cutting measures and the disposal of major international affiliated companies while fundamentally continuing the four core business areas of agriculture, construction, energy and agricultural equipment. 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.The transformation concept forms the basis for the second draft of the restructuring report presented last week. The restructuring expert engaged by BayWa AG in July 2024 confirms with the presentation of the second report draft that the company can be restructured. The restructuring expert assumes that the company will return to sustainable financial performance indicators by 2027 as a result of improved earnings and simultaneous debt reduction.The focus of the transformation is on strengthening operational competitiveness in the four core business areas. BayWa AG's strong position in stable, socially relevant key markets and the trust of its financing partners enable it to restructure independently.In the operational and organisational areas, costs are to be saved across all business areas, and liquidity commitment and processes are to be optimised. This primarily includes streamlining administrative functions and transforming the IT division.Michael Baur, CRO and member of the Board of Management of BayWa AG, says: “The BayWa of 2027 will be a focused, modern trading company with the four core business areas of agriculture, construction, energy and agricultural equipment. 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.”As part of the transformation concept, BayWa AG is also planning to cut up to 1,300 of its current total of almost 8,000 full-time positions by 2027. The majority of the job cuts will not take place in the regions, but particularly in the corporate functions. Around 40 percent of the jobs here are to be cut by the end of 2027. Regarding the regional network, the existing locations have been reviewed in terms of demand and profitability. The analysis showed that a further 26 of the current total of just over 400 locations cannot be operated profitably in the long term either and will therefore be closed by the end of 2027. As a result, BayWa AG will be able to maintain 6,700 jobs. Talks with the central works council on the planned personnel measures have begun, and an agreement is sought by the end of March 2025. Weiter zum vollständigen Artikel bei BayWa AG (vink. NA) Weiter zum vollständigen Artikel bei BayWa AG (vink. NA)