Alstom to cut 1,500 jobs

Alstom plans to cut around 1,500 full-time equivalent positions and scrap its dividend as part of a cost-savings plan to reduce debt and boost profitability.

Report informs via foreign media that the French train maker said Wednesday that it is also considering equity and equity-like issuances, as well as a capital increase, among potential options to accelerate its debt-reduction plans.

Alstom’s measures are part of a plan that seeks to secure its mid-term profit and cash-generation targets and come after the company said last month that it burned cash in the six months to September.

The company also said it would overhaul its governance to improve accountability and financial discipline. Its board intends to propose former Safran Chief Executive Philippe Petitcolin as a director and then as chairman, separating the chair role from that of CEO. Henri Poupart-Lafarge will keep the CEO role, the company said.

Alstom said it is targeting a reduction of 2 billion euros ($2.18 billion) in its net debt by March 2025 and that it is considering a range of transactions to accelerate that effort. These include an asset-sale plan that has already been launched, with proceeds of up to EUR1 billion targeted, in addition to equity issues and a capital increase, it said.

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