Alfen, a leading EV charging station manufacturer, is undergoing a major reorganization that will result in a 15% reduction of its workforce, equating to approximately 150 job losses.
This decision comes in light of a downturn in the electric vehicle (EV) market, where Alfen, operating both domestically and internationally, is facing declining sales. The reduction in sales has put significant pressure on the company’s profitability, necessitating cost-cutting measures, including labor expenses. Part of the adaptation strategy includes relying less on temporary workers and reducing the number of jobs through natural attrition. Despite these efforts, Alfen’s management does not rule out forced layoffs and is currently in discussions with trade unions and the works council to address the situation. Further changes involve simplifying the organizational structure and postponing investments. These measures aim to enhance profitability and maintain Alfen’s competitiveness in the market. In the first half of the year, Alfen reported a net loss of €11.1 million, compared to a loss of €9.4 million in the same period last year. **Alfen is not alone in facing these challenges. Other EV charging infrastructure providers, like EVBox, which has been discontinued by its French parent company ENGIE, and Northvolt, a major Swedish manufacturer, are also struggling. The root of these economic difficulties lies in the broader market shift: in several major automotive markets, EV sales are declining, particularly in Germany where subsidies have been discontinued, significantly impacting the market. In contrast, the demand for electric vehicles in the Netherlands remains stable. Data from BOVAG and the RAI Association indicates that over 30% of new cars sold in the first nine months of this year were fully electric. Alfen’s restructuring highlights the challenges the EV charging industry faces and underscores the necessity for swift adaptation to changing market conditions.