OMV: Cuts are being made

Energy and chemical producer OMV aims to cut costs. Therefore, the Vienna-based company announced extensive job cuts at the end of last trading week. According to the plan, 2,000 jobs will be eliminated, with locations in its home market of Austria likely to be affected "in the mid-three-digit range."

OMV has now confirmed what some media outlets had already reported a week earlier. The Kurier newspaper reported that the Austrian company plans to cut nearly 2,000 jobs, including around 400 in Austria. The oil, gas, and chemical producer aims to save a total of around €400 million through these measures by 2027. The company has already begun negotiations with employee representatives "regarding possible impacts on employment in Austria, which are currently estimated at a mid-three-digit range."

In addition, the company stated: "OMV is conducting a group-wide review to future-proof its businesses to streamline operations and portfolios, increase flexibility, and improve long-term resilience in a volatile market environment." The company thus indicates that divestments of business units could also occur.

OMV CEO Alfred Stern stated: "Securing the future of our business and strengthening our competitiveness are crucial to ensure we can continue to serve our customers and stakeholders smoothly. In a challenging market environment and in the face of geopolitical uncertainties, we are laying the foundations for long-term resilience and the successful implementation of our strategy."