Salomon announces restructuring plan, to eliminate 400 jobs
27 Dec '05
1 min read
French sports equipment company Salomon has announced a major restructuring plan of two months; after Finnish sporting goods company Amer Sports acquired it.
The Annecy-based Salomon will cut 400 jobs, mainly in France as part of a three-year turnaround plan. The company will also shift production of Salomon and Atomic skis abroad, which was acquired by Amer for €485 million at the end of October.
The Helsinki-based Amer Sports anticipates the measures to cost €50 million, but looking to cut annual costs by €40 million by 2008. A year ago, the company stated it would axe 160 jobs in France over two years to improve profitability.
Salomon's President, Jean-Luc Diard said, "These measures are absolutely necessary in order to ensure our competitiveness and build a base for future growth."
Jean-Luc Diard has retained his role after the takeover and now heads a slimmed down seven-member management team. Salomon achieved an operating profit of €9 million on sales of €653 million in 2004.
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