AUERBACH (dpa-AFX) - Keyboard manufacturer Cherry has recently undergone some upheaval. A step to reduce costs has now been completed: According to a spokesperson, Cherry has parted ways with 105 employees by the end of March 2024, 80 of them at its headquarters in Auerbach in the Upper Palatinate (Amberg-Sulzbach district). According to the statement, the company expects an "improvement in the financial situation" in 2024.

The job cuts had already been announced at the end of 2023. According to the statement, all organizational levels worldwide were affected: both executive and management positions as well as administrative and operational positions in Germany, France, Sweden, China and the USA. "This completes the reorganization of our global personnel structure and does not require any further cuts," Cherry announced.

For the 2024 financial year, the Management Board expects consolidated Group sales of between 140 and 150 million euros. The operating result (EBITDA) is also expected to increase. "We see 2024 as a year of revitalization for Cherry SE," said CEO Oliver Kaltner recently. In the first quarter of 2024, the company expects turnover of around EUR 29 million, which is roughly on a par with the previous year. In 2023, Cherry missed its targets significantly in terms of both revenue and earnings according to preliminary figures. The 2023 annual report is to be published on April 25.

Cherry also partially relocated switch production. The site in Zhuhai, China, will reportedly develop and produce office and gaming hardware for the international market as well as specifically for the Chinese and other Asian markets. This will save considerable costs in logistics, said a spokesperson.

The MX2 switches for Cherry keyboards and the particularly flat ultra-low profile switches will be produced at the headquarters in Auerbach in future. Both mechanical switch types play a major role in the gaming scene. The MX2 switches had a very fast, precise transmission and the ULP switches could also be installed in laptops - for both gaming and office use.

All in all, the management is making a clear and necessary change in strategy compared to the framework parameters set over the last five years, according to Cherry. The company employs around 400 people, 230 of whom work in Auerbach and around 100 in China.

Cherry was floated on the stock exchange in June 2021 by US financial investor Argand Partners at a price of EUR 32 per share. After slight price gains in the first few days of trading, the share price fell steadily. Most recently, the share price was just around 1.6 euros. This gives the company a market capitalization of 39 million euros. Argand Partners currently holds just over 30 percent, making it the largest shareholder./DP/zb

US investment firm Argand Partners