Indiana-based Hillenbrand to cut jobs as part of restructuring
INDIANAPOLIS (WISH) — Batesville-based Hillenbrand, Inc. will cut jobs as part of a restructuring plan.
The company, which makes industrial equipment used in the food, plastics, recycling, and automotive industries, made the announcement Tuesday as it issued its quarterly earnings report.
Hillenbrand leaders cited weaker-than-expected demand in the company’s Molded Technology Solutions segment (MTS), where revenue dropped 16% from the same time frame last year.
“Our Molding Technology Solutions segment faced greater than expected softness as we continued to see low customer demand amid the uncertain global macroeconomic environment,” Kim Ryan, President and CEO of Hillenbrand, said in a call with investors.
Hillenbrand says it will implement ‘structural changes’ that will include cost saving and job reduction that would equal approximately $15 million per year.
Ryan did not provide a specific number of job cuts or a timeline but suggested it would be around 5% of the MTS workforce.
“We’re not satisfied with the current performance, and we’re confident these actions will help optimize our cost structure as we manage through the current demand environment, while also ensuring we’re well positioned to return to higher levels of growth and profitability once the market recovers,” Ryan said.
Hillenbrand posted an $18 million profit in the quarter.