The French railway group is seeking to reduce its debt by 2 billion euros by March 2025. To do this, it is counting in particular on the elimination of 10% of commercial and administrative functions.
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Alstom is trying to get back on track. The railway group, weighed down by commercial and financial difficulties, announced on Wednesday November 15 a cost reduction plan with the elimination of 1,500 jobs, or 10% of commercial and administrative functions. According to a press release, the French multinational has set itself the objective of reducing its debt by 2 billion euros by March 2025, via an asset sale program and possibly a capital increase, “depending on market conditions”.
After this announcement, Alstom’s share price plunged by more than 11% in initial trading on the Paris Stock Exchange. The world’s second largest railway manufacturer has been going through a crisis since announcing to investors on October 4 that it was excessively burning cash. “Although demand remains at a sustained level, despite some volatility, our commercial performance has been weak”commented Henri Poupart-Lafarge, the group’s CEO.
The restructuring also affects the top of the group since it was decided to dissociate the functions of chairman of the board of directors from that of general manager from July 2024. Henri Poupart-Lafarge, CEO since February 2016, will only remain general manager. The former general director of Safran, Philippe Petitcolin, is to be appointed chairman of the board of directors.