Burckhardt Compression announces restructuring
In order to adapt to the expected lower workload in the coming quarters and to sustainably align its cost base with market conditions, Burckhardt Compression announced it is simplifying its organizational structure, consolidating selected functions and optimizing business processes. It also confirmed its previously communicated guidance for fiscal year 2026, which forecast turnover of between CHF 900 million and CHF 1 billion ($1.124 billion to $1.249 billion USD).
The restructuring measures include a further strengthening of the organization in India and are expected to improve Burckhardt Compression’s cost competitiveness. At the same time, the company said the measures will position it to benefit from medium- and long-term growth opportunities in its target markets, particularly those supported by the increasing demand for energy security.
The proposed measures could affect up to approximately 150 positions at the Winterthur, Switzerland, site and up to 70 positions at international locations. The company employs roughly 3,300 globally, with just over 1,000 based at its Winterthur headquarters.
The final scope of the program, including its impact on employment, will be determined following the consultation process with the Employee Representation Committee (ANV) in Switzerland.
“The measures announced… are necessary to ensure Burckhardt Compression’s competitiveness and sustainable success,” stated CEO Fabrice Billard. “We are fully aware that they create uncertainty for the employees who may be affected and for their families. We are therefore committed to conducting the consultation process in a constructive manner and to carefully reviewing the proposals submitted by the employee representatives.”
Following full implementation and based on current business volumes, the program is expected to generate annual cost savings of around CHF 20 million ($24.97 million USD). One-time restructuring expenses of approximately CHF 3 million ($3.75 million USD) are anticipated in the first half of fiscal year 2026.