Lenzing is planning a major restructuring that will result in 600 jobs being cut by the end of 2027. The company aims to streamline administrative functions and increase efficiency, forecasting annual savings of at least 25 million euros from 2026 and 45 million euros by the end of 2027.

The restructuring will take place in two phases. In the first phase, 300 administrative positions will be eliminated, 250 of which will be cut this year. In the second phase, Lenzing will shift its focus to strengthening its international presence in Asia and North America. However, this expansion will also result in the loss of another 300 jobs at the Lenzing site by the end of 2027.

In addition, the company has begun a strategic review of its production site in Indonesia, with possible outcomes ranging from restructuring to a complete sale.

Investments

Lenzing expects to record special impairments of up to 100 million euros on long-term assets in 2025. These write-downs will negatively impact the consolidated operating result (EBIT) and annual net profit, but will not affect EBITDA. In fact, EBITDA is expected to be higher than last year. For 2027, the company is targeting an EBITDA of around 550 million euros, provided market conditions remain stable and there are no major geopolitical disruptions.

In addition to these restructuring measures, Lenzing has also announced an investment program for its sites in Lenzing and Heiligenkreuz, totaling more than 100 million euros by the end of 2027.