Lenzing to cut 2,000 jobs, sell Austrian and UK sites

Austrian fiber manufacturer Lenzing is set to eliminate around 2,000 jobs worldwide by the end of 2027 as part of a strategic realignment.

The company announced that fiber production at its Heiligenkreuz site in Austria's Burgenland and its Grimsby facility in England will cease by the end of 2027. Both locations are slated for sale. For the 285 employees at Heiligenkreuz, an existing social plan will be applied. Lenzing's CEO, Georg Kasperkovitz, stated that the company will withdraw from Heiligenkreuz and hopes for the site's continuation under a new owner, with the search for a buyer beginning immediately.

“

Lenzing will withdraw from Heiligenkreuz and try to ensure that the site continues with a new owner.

Lenzing's global workforce, currently at approximately 7,700 full-time equivalents by the end of 2025, will be significantly reduced. Kasperkovitz clarified that this is not a closure or cost-cutting program tied to the new strategy, emphasizing shareholder confidence, evidenced by fresh funding of up to 600 million euros. The company's headquarters in Lenzing, Upper Austria, is slated for upgrades.

To bolster its financial structure, Lenzing plans a capital increase of up to 300 million euros, subject to approval at an extraordinary general meeting expected around August 25, 2026. This initiative is supported by new financing agreements providing up to 300 million euros, and existing debt maturities have been extended to 2030. The company's main shareholders, the B&C Group and Suzano, along with Oberbank, are backing these cost-saving measures.

“

The search will begin tomorrow and, based on experience, can be completed within a few months.