The general high rise in inflation and continuing rising interest rates are affecting the consumer behavior negatively within the residential segment. The low consumer confidence continues to create challenges in demand in Europe moving forward. As previously informed Kährs is preparing and adapting its operations, with a focus on cost control and capacity adjustments in steps, to ensure continued low debt and a strong cash flow.
To adjust capacities and to introduce further efficiency programs to mitigate the effects of lower demand in 2023, Kährs has implemented a plan to lower the capacities in all European factories in steps during the first two quarters 2023. The next step is affecting an additional 90 employees within Kährs' European units in addition to the measures already taken in the Q1 2023. Negotiations with union parties will be initiated and any redundancies are expected to be completed during the Q2 2023.
Kährs Group is a leading manufacturer and distributor of flooring.
