O-I Glass’ CEO has warned of even more job cuts next year.
Gordon Hardie, CEO of O-I Glass, said the company was evaluating the possibility of cutting 7% of its capacity by the middle of next year.
The cuts would save the company about $100 million. The world’s largest container glassmaker has so far cut 4% of its global capacity with furnace closures in South America, USA and Europe.
The warning comes after a mass job cull at its Perrysburg, OH, USA headquarters. Staff reported how they were called into Teams video calls where they were made redundant.
Senior staff members from its team in Latin America were also let go.
Alongside this, the company will indefinitely suspend operations at its 24,000ft2 Innovation Centre in Perrysburg from November 15.
Elsewhere staff in Barcelona, Spain have been put on furlough until the end of March next year while a furnace in Vayres, France has been put on a cold shutdown.
The cuts are part of its Fit to Win programme aimed at delivering savings of at least $300 million by 2027.
Speaking on Tuesday, Mr Hardie said: “Management is seeking to eliminate unprofitable and redundant capacity to increase network utilisation and boost productivity.
“The company is evaluating the closure of at least 7% of capacity by mid-2025 to reduce the fixed base of the network and generate more than $100 million of annualized savings."
The company reported a loss before income taxes of $57 million in the third quarter of 2024, compared to earnings before income taxes of $82 million in the prior year period.
Operating profit was $144 million in the third quarter of 2024, compared to $301 million in the same period of 2023.
“We do not believe our 2024 performance is reflective of what the business can deliver.
"We are determined to improve results in 2025 and beyond, as we drive the improvement measures in our Fit to Win programme,” Hardie added.
