Lening AG shares tumbled nearly 17% in early trading Tuesday, wiping out a significant portion of the company's market value as investors reacted sharply to a sweeping restructuring announcement.
The fiber manufacturer's stock fell to €20.30 on the Vienna Stock Exchange, reflecting immediate skepticism about the execution risks and financial impact of the proposed changes.
The sell-off was triggered by reports that Lenzing plans to eliminate 2,000 jobs by the end of 2027.
In addition to the workforce reduction, the company intends to sell its Heiligenkreuz production site, a move that underscores the severity of the operational overhaul.
The combination of significant headcount cuts and asset divestment has raised concerns among shareholders about the near-term stability of the business.
This development marks a stark pivot for the Austrian industrial group, which has faced mounting pressure to streamline operations in a challenging market environment.