Adient announces restructuring plans in Europe

In a regulatory filing, on April 22, Adient announced restructuring plans in Europe to reduce operating, administrative and engineering costs, primarily through workforce reductions and the transfer of work to countries with lower labor costs. These restructuring plans are being implemented in response to structural changes occurring in the European automotive market and to ensure Adient maintains a competitive cost structure by reducing labor costs and increasing efficiencies. The plans were initiated by Adient’s management as of March 31, 2024, and the affected employees were notified earlier today. Discussions with the relevant works councils to complete statutory co-determination procedures will occur over the coming months. Adient currently expects to record a restructuring charge of approximately $125M in the second quarter of fiscal year 2024, almost entirely related to termination benefits in Europe. Adient currently estimates that this charge will result in future cash expenditures of a similar amount. Restructuring actions associated with these specific plans will primarily occur in fiscal years 2025 and 2026 and are expected to be substantially complete by fiscal year 2027. When fully complete, Adient anticipates approximately $60M in reduced annual operating cost from this activity, of which approximately 80% will result in net savings.