Lenzing AG faces a fresh wave of restructuring amid mounting pressure on its workforce and financial performance

Lenzing AG, the Austrian‑based fiber and pulp manufacturer listed on the Vienna Stock Exchange, is once again at the centre of a restructuring saga that has spanned more than a decade. Recent announcements indicate that the company may cut up to 500 jobs, with 200 positions slated for elimination within the current calendar year. This move follows a pattern of personnel reductions that has appeared in successive years, underscoring a broader struggle to align the company’s operations with its long‑term strategic goals.

A decade‑long downturn in shareholder returns

Analysts have noted that Lenzing’s share performance has been markedly below expectations. Over the past three years, the stock has trended lower, while the ten‑year performance has similarly reflected a persistent decline. The company’s current market value, approximately €1.02 billion, sits against a backdrop of a 52‑week high of €35.85 (as of 30 September 2024) and a low of €21.55 (as of 18 June 2025). The price‑to‑earnings ratio of –8.6 signals that the firm’s earnings have been negative or negligible, a situation that has dampened investor confidence.

Job cuts targeted at core production sites

The most recent announcement, made on 26 September 2025, specifies that the workforce reductions will be concentrated at Lenzing’s main site in Oberösterreich (Upper Austria). The company plans to phase the layoffs in two stages, a strategy that allows for a smoother transition while attempting to mitigate the impact on remaining employees and local communities. The scale of the cuts—up to 500 positions—suggests a significant re‑evaluation of the company’s production capacity and cost structure.

Implications for the industry and investors

Lenzing’s challenges are not isolated. The broader materials sector has been grappling with fluctuating commodity prices, supply‑chain disruptions, and evolving demand for sustainable textiles. As a supplier of high‑performance fibers used in clothing, non‑wovens, technical textiles, and furniture, Lenzing’s operational efficiency directly affects downstream manufacturers. For investors, the company’s current trajectory—highlighted by a low share price of €26.55 as of 24 September 2025 and a negative earnings ratio—raises questions about the viability of its long‑term business model.

Market context

During the same week, the ATX Prime and ATX indices in Vienna showed modest movement, with the former hovering around 2,310 points and the latter near 4,630 points. These indices, which include a wide range of Austrian equities, reflected a broadly stable but cautious market environment, mirroring the uncertainty surrounding Lenzing’s future.

Looking ahead

Lenzing’s leadership faces a critical decision point: whether to continue trimming its workforce and potentially streamline operations, or to seek alternative avenues such as strategic partnerships, divestitures, or new product lines that could rejuvenate the company’s earnings profile. For stakeholders, the next few quarters will be pivotal in determining whether the announced layoffs can translate into a more resilient and profitable organization.