MAGAZINE
“We look back on a rather mixed fiscal year 2019. In addition, we face major challenges this year due to massive changes in the consumer market and the declining demand for audio products because of the COVID-19 crisis. In order to position the company for a successful future, we will adapt our organizational structure to the changing conditions and align it with the new requirements,“ said Daniel Sennheiser, co-CEO of Sennheiser.
“We will continue to focus on our core competencies and further strengthen both our consumer and professional divisions by transferring operational responsibility completely to these two business areas. Sennheiser has always stood for excellent sound quality and extraordinary audio experiences since its foundation 75 years ago – this is what we will continue to stand for in the future,“ added Dr. Andreas Sennheiser, co-CEO of the company.
The adjustment of the organizational structure will result in job cuts throughout the company, particularly in corporate functions such as Supply Chain and Operations. Overall, Sennheiser plans to cut up to 650 jobs worldwide by the end of 2022. The reduction is to be implemented in the most socially responsible manner possible. Measures under consideration include not filling open positions, a voluntary redundancy scheme and severance options in addition to opportunities for partial and early retirement. “We are a family-owned company and every single one of our employees is part of the team. Together we share a passion for audio. With this in mind, these have been very difficult decisions to make and it is important to us primarily to avoid redundancies and to find individual solutions together with employees,” said Dr. Andreas Sennheiser, co-CEO.
Since the beginning of 2020, the global effects of the COVID-19 pandemic have also presented Sennheiser with major challenges. "With the cancellation of live events all over the world, the entire event and music industry has been practically brought to a standstill and is only slowly getting back on track. The future of many rental companies, and other service providers is under threat. This is having a significant impact on sales of microphones, which will continue to be reflected in our business performance next year. Exceptions are studio microphones,“ explained Daniel Sennheiser. The effects are also being noticed in Sennheiser’s consumer division: the global headphone market has declined by 30 to 40 percent in recent months, particularly as sales in bricks and mortar retail outlets in many countries were no longer possible at all or only to a very limited extent. Sales of Sennheiser headphones also decreased to the same extent. In order to mitigate the negative effects, Sennheiser had already taken measures in March by starting comprehensive cost reductions and introducing reduced working hours in Germany. Measures to reduce personnel costs and material costs were implemented to the same extent at Sennheiser's international locations.
