Swiss lift manufacturer Schindler today said it would be cutting 2,000 jobs in the coming two years after Covid disruptions saw its first-half profits fall by more than 28%.
The company said it had been caught in a pincer of revenue falling by 8.7% in the half-year and the depreciation of numerous currencies around the world relative to the Swiss franc.
It said that in the second quarter the pandemic hurt every market around the globe, heavily affecting the construction sector.
Looking ahead, Schindler expects new installation and modernisation markets to contract further, with no recovery in sight until 2022.
The health of the franc versus all major currencies would lead to an even higher impact on consolidated revenue and cost than previously expected.
"Adverse conditions have been accelerating over the last few months and that calls for cost adjustment measures along the whole value chain," said Thomas Oetterli, Schindler’s CEO.
"We need to remain competitive to be able to fulfill our growth agenda. Reducing cost now is essential to secure the long-term health of our company."
Image: Elevator test tower at Schindler head office in Ebikon, Lucerne, Switzerland (Schindler)