A total of 1500 people were made redundant by O-I Glass last year as part of its ongoing Fit to Win cost-cutting programme.

The world's largest container glass manufacturer said it closed eight furnaces last year as part of Fit to Win.

The company described Fit to Win as a programme focused on the reduction of redundant production capacity and the optimisation of its network, as well as streamlining other costs, such as selling, general and administrative expenses.

"Since undertaking this review, the company has announced the idling of capacity or closing of facilities involving eight furnaces and approximately 1500 job eliminations.

"The company believes these actions will contribute to optimising shareholder returns."

For the year ended December 31, 2024 the company recorded restructuring and other charges of approximately $208 million, of which $201 million was related to Fit to Win.

"These charges consisted of employee costs, such as severance and benefit-related costs, write-down of assets and other exit costs in the Americas segment ($79 million), Europe segment ($115 million) and Retained corporate costs and other ($14 million)."

In its annual report for 2024 it warned the programme will continue throughout 2025 with more cuts likely.

“Additional indefinite or permanent capacity closures in Europe will likely be necessary in 2025 to align its business with demand trends.”

MAGMA

The annual report discusses the Magma glassmaking technology which the company has been implementing since 2022. O-I competed construction of its Bowling Green, Kentucky facility in the last quarter of 2024

But it said: “As of the end of 2024, the company has paused development on the final phase of the Magma programme, known as Generation 3, until commercialisation activities are completed at the Bowling Green plant.”

It adds: “In line with the company’s strategy to use an economic profit framework for capital allocation decisions, Magma must also achieve economic profitability within a reasonable timeframe in addition to successfully achieving key production and commercial milestones.

“This recent objective applies to all of the company’s plants, including those using Magma.

“The company will continue to evaluate the Magma programme in 2025 as commercialisation activities progress at the Bowling Green plant.”

It intends to roll out its ULTRA technology which it said can reduce the weight of its glass containers by up to 30%, to improve convenience, reduce logistics costs and greenhouse gas emissions.

O-I Glass currently employs 21000 people and operates 69 facilities in 19 countries.