Imaging technology company Agfa has announced a new cost savings plan which may result in cutting up to 530 jobs in Belgium.
Headquartered in Mortsel near Antwerp, Agfa specialises in providing imaging and IT technology to the healthcare, industrial and printing sectors.
The company employed more than 4,800 employees by the end of 2023, including almost 2,300 in Belgium.
Agfa announced on Thursday that it is planning to adjust the cost base of its traditional film activities "to the reality in the market," and is looking to save €50 million by the end of 2027.
It said that if the plan goes ahead, up to 530 employees in Belgium could be affected, including blue and white collar employees as well as management.
The company said it plans to avoid as many forced redundancies as possible over the next three years "by using the natural outflow of staff and also by encouraging mutations and re-employment".
The news was shared with social partners in Belgium at an extraordinary works council meeting on Thursday.
"While we are convinced that the proposed measures are necessary for the future of our company, we are also very aware that this message might cause anxiety and uncertainty among our employees," said Pascal Juéry, CEO of the Agfa-Gevaert Group.
"We will do our utmost to maintain a constructive social dialogue with the social partners involved and keep the period of uncertainty as short as possible," the CEO continued.
Unions surprised at scale of job cuts
As reported by Belga, socialist trade union ABVV said that the reorganisation at Agfa was not a surprise, but will have a significantly greater impact than expected.
"For 25 years, this company has been saving money, and nothing ever came back to the workers. Now they are cutting off a large chunk instead of small pieces," said ABVV's Mark Pierssens.
He described the situation for both workers and employees as a "social bloodbath".
"This will hit like a bomb," he said, warning of potential unrest among workers.
Two years ago, Agfa cut hundreds of jobs globally. The offset division was sold, and staff reductions affected the IT and accounting departments. At that time, unions were already bracing for further changes.
Third quarter results
Agfa also released interim results for the third quarter of 2024, and noted that there was an "accelerated market decline in traditional film activities."
In its radiology solutions business (including medical film sales), revenues were down by 10.6% and adjusted EBITDA (earnings before interest, taxation, depreciation and amortisation) fell by 48.3%.
The group reported total revenues of €277 million in the third quarter, down slightly from €280 million during the same period last year. Agfa noted that profits (adjusted EBIDTA) fell by 10.8% to €15 million, and that a decrease in profitability was mainly due to "the lower fixed cost coverage in the traditional film activities".
