Industry –Transformation sensor start-up

Sales targets were missed repeatedly. Due to the size of the start-up in terms of employees and the planned production volume, the associated cash burn was no longer sustainable. In addition to the strategic realignment, measures were defined and stringently implemented across all cost types and cost centres. This was done with the involvement of the management team as well as transparent and intensive communication of the painful cuts with the workforce at the start of implementation.

The measures included a massive reduction in the workforce, particularly in the R&D department, as the company had reached series production maturity in the meantime and further developments on the customer side did not promise any short-term additional sales growth. All cost items were scrutinised, necessity questioned and, on the supplier side, backed with benchmarks. Where possible and economically feasible supplier contracts were cancelled, reduced or replaced. The strategic realignment also led to a reduction in production volumes and the associated cutbacks at suppliers and manufacturing partners. Intensive renegotiations with the core assembly partners led to a reduction in fixed costs.