Lenzing is eliminating 2,000 jobs worldwide as the Austrian cellulose fiber manufacturer accelerates a strategic restructuring amid a persistent slump in fiber production.
The company is halting production at its facility in the Burgenland region, a move that underscores the severity of the demand headwinds facing the sector.
The workforce reduction comes as Lenzing attempts to align its cost base with lower output levels.
The strategic pivot is designed to streamline operations, but the immediate impact is a significant contraction in headcount across its global footprint.
The decision reflects a broader industry challenge where oversupply and weak demand have forced producers to scale back aggressively.
This development follows Lenzing’s first-half financial report, which showed a rise in profit despite a decline in revenue.