AVL List Announces Further Workforce Reduction in Graz
Table of Contents
- 1. AVL List Announces Further Workforce Reduction in Graz
- 2. A History of Restructuring at AVL
- 3. Navigating a Changing Automotive Landscape
- 4. The Rationale Behind the Cuts
- 5. AVL’s Financial Performance and Global Footprint
- 6. How will AVL’s 350 job cuts affect its Graz operations and employees?
- 7. AVL Restructuring: 350 Job Cuts in Graz – What You Need to Know
- 8. The Driving Forces Behind the Layoffs
- 9. Impact on AVL’s Graz Operations
- 10. AVL’s Strategic Focus: A Look Ahead
- 11. The Broader Context: Automotive Industry Trends
- 12. What This Means for AVL’s Clients
Graz, austria – Technology firm AVL List is implementing another round of job cuts, impacting approximately 350 positions at its Graz headquarters in the coming months. This declaration, made concurrently with an employee briefing on Wednesday, underscores the ongoing adjustments within the automotive technology sector, and reflects evolving industry dynamics and customer needs.
A History of Restructuring at AVL
This latest reduction builds on previous workforce adjustments made throughout the past year. By mid-2026, AVL’s Graz workforce is projected to fall below 3,000 employees. This represents a notable decrease from the approximately 4,300 employees the company employed prior to the 2019 Coronavirus Pandemic—a reduction of roughly 30 percent.
An external consulting firm was brought in during the autumn of 2025 to oversee what the company terms a “group-wide restructuring programme.” This initiative is designed to address challenges arising from the shifting automotive market and broader structural changes within the industry. AVL intends to leverage this restructuring to reinforce its long-term competitive position.
The Rationale Behind the Cuts
Company officials attribute the need for further job reductions to substantial changes in the automotive industry and fluctuations in customer demand. These factors, they assert, are influencing the entire European mobility sector, requiring firms to demonstrate strategic clarity and prioritize investment. AVL is responding with a sustained transformation and restructuring plan.
Chief Executive Officer Helmut List emphasized the difficulty of these decisions. “Anyone who knows me knows that job cuts are among the most challenging decisions – for the company and for me personally,” List stated. “We are aware that such measures directly affect people and therefore go far beyond economic aspects. At the same time,they are necesary in the current situation in order to position AVL sustainably and to secure our technological innovative strength.”
The company has committed to coordinating the dismissals with employee representatives and providing a social plan that includes outplacement services. List added,”We are realigning our association in order to remain a technological leader and at the same time operate in an economically stable manner.”
AVL’s Financial Performance and Global Footprint
In 2024, the AVL group reported sales of 2.03 billion euros, a slight decrease from 2.05 billion euros in 2023, according to Economic Compass. The company currently employs around 12,000 people globally, despite the reductions in Graz. AVL maintains its position as a leading global provider of mobility technology, specializing in growth, simulation, and testing for the automotive industry, as well as sectors like rail, shipping, and energy.
| Year | Total Employees (Worldwide) | Sales (in Billions of Euros) | Graz Employees (Approximate) |
|---|---|---|---|
| 2019 | 4,300 (Graz) | N/A | N/A |
| 2024 | 12,000 | 2.03 | Below 3,000 (projected mid-2026) |
| 2023 | N/A | 2.05 | N/A |
The automotive industry is undergoing a period of unprecedented transformation, driven by the rise of electric vehicles, autonomous driving technologies, and shifting consumer preferences. The International Energy Agency reports that global EV sales reached 14% of all new car sales in 2023, a continued upward trajectory. Companies like AVL must adapt to remain competitive in this evolving landscape.
Is this restructuring a necessary step for AVL to thrive in the long term, or a sign of deeper challenges within the automotive industry? How will these job cuts impact the austrian economy, and what support is being offered to affected employees?
Share your thoughts in the comments below.
How will AVL’s 350 job cuts affect its Graz operations and employees?
AVL Restructuring: 350 Job Cuts in Graz – What You Need to Know
AVL, a global leader in the advancement of powertrain technologies, has announced a critically important restructuring plan impacting its workforce in Graz, Austria. The company will be cutting 350 positions, reducing its total employee count in Graz to under 3,000.This move, announced on January 28, 2026, is framed as a necessary step to ensure long-term competitiveness within a rapidly evolving automotive industry.
The Driving Forces Behind the Layoffs
The automotive sector is undergoing a dramatic transformation, shifting away from traditional internal combustion engines (ICE) towards electric vehicles (EVs) and option fuel technologies. This transition requires AVL to adapt its expertise and resource allocation. Several key factors contributed to this decision:
* Shift to Electrification: The core of AVL’s business historically revolved around ICE development. While the company is actively expanding its EV capabilities,the transition necessitates a recalibration of skills and personnel.
* Industry Slowdown: Global automotive sales have experienced fluctuations in recent years,impacting demand for AVL’s services. Economic headwinds and supply chain disruptions have played a role.
* Restructuring for Future Growth: AVL aims to streamline operations and focus investment on key growth areas like electric drivetrains, battery technology, and software development. This requires a leaner organizational structure.
* Increased Competition: The landscape of automotive engineering is becoming increasingly competitive, with new players entering the market and established companies investing heavily in innovation.
Impact on AVL’s Graz Operations
The 350 job cuts will affect various departments within AVL’s Graz headquarters. While specific details regarding departmental impact haven’t been fully disclosed, reports indicate that roles related to traditional ICE development will be disproportionately affected.
* Affected Departments: Areas likely to see reductions include engine testing, calibration, and related engineering functions.
* Support for Affected Employees: AVL has stated its commitment to supporting affected employees through severance packages, outplacement services, and retraining opportunities. The specifics of these packages are currently being negotiated with employee representatives.
* regional Economic Impact: The layoffs represent a significant economic event for Graz and the surrounding region, raising concerns about unemployment and the potential impact on local businesses.
AVL’s Strategic Focus: A Look Ahead
Despite the job cuts, AVL remains committed to its long-term growth strategy. The company is actively investing in several key areas:
* electric Vehicle technologies: AVL is expanding its capabilities in electric motor design, battery management systems, and power electronics.
* Hydrogen Technologies: Recognizing the potential of hydrogen as a future fuel source, AVL is investing in research and development of hydrogen fuel cell systems and related technologies.
* Software and Digitalization: AVL is increasingly focusing on software development and digitalization to enhance its engineering services and offer new solutions to its clients. This includes advancements in simulation, data analytics, and artificial intelligence.
* Advanced Simulation Capabilities: AVL is a leader in powertrain simulation, and continues to invest in expanding these capabilities to support the development of next-generation technologies.
The Broader Context: Automotive Industry Trends
AVL’s restructuring is part of a wider trend within the automotive industry. Many established automotive suppliers and engineering firms are facing similar challenges as they adapt to the shift towards electrification and digitalization.
* Continental AG: In late 2025,Continental announced plans to cut thousands of jobs globally as part of a restructuring program focused on EVs.
* Bosch: Bosch has also been streamlining its operations and investing in new technologies to remain competitive in the changing automotive landscape.
* Magna International: Magna, another major automotive supplier, has announced investments in EV components and software, while also adjusting its workforce.
What This Means for AVL’s Clients
AVL’s clients – including major automotive manufacturers like BMW, Volkswagen
