The Danish pump manufacturer Grundfos is pulling out all of the stops to increase profitability, Berlingske reports.
The company announced in November that it would be cutting 405 jobs, and that the equivalent of 100 more would disappear by discontinuing temporary and consultancy contracts.
But now it has been disclosed that the total toll of the cutbacks will be equivalent of 850 jobs – once the positions that were planned to be filled and double functions due to restructuring are taken into account.
READ MORE: Grundfos to cut 405 jobs
Kim Nøhr Skibsted, the head of communications at Grundfos, explained the company’s decision to delay the announcement of the higher job count.
“We didn’t start out by saying 850 positions would be discontinued,” he said.
“Because it would have created uncertainty to mix unoccupied positions and planned positions that wouldn’t be advertised together with dismissals.”
Some of the company’s departments will also be merged to maximise efficiency. For example, all of its marketing functions will be housed in a single business unit.
“We need to identify where we can do things smarter,” Skibsted concluded.
Grundfos aims to triple its profit margin to ten percent by 2020.
