Automotive safety systems supplier Autoliv Inc (NYSE:ALV) plans to reduce its headcount in France as part of the previously announced initiatives to reduce its global headcount and optimize its footprint.

On June 8, Autoliv announced its intention to reduce up to 2,000 indirect employees.

The announcement is the final major communication related to the indirect headcount reduction initiative announced in June, as per the company.

The company will slash its workforce in France by about 20% or approximately 320 employees at its major plants in France.

Autoliv aims to initiate these reductions in the first half of 2024, and they are expected to be fully implemented by the end of 2025.

The jobs cut is expected to affect 220 indirect employees, mainly in production overhead but also within R,D&E and S,G&A.

Also, Autoliv intends to relocate its steering wheel manufacturing in France to other plants, affecting approximately 100 direct employees.

The plan in France is expected to generate savings of around $10 million in 2024, reaching around $20 million in 2025 and around $25 million in 2026 when fully implemented.

The related costs for the headcount reduction will be accrued this quarter but will not impact the company's adjusted operating margin for Q4 or FY23.

With the latest jobs cut, the total announced reductions of direct headcount are around 400 and more than 1,300 for indirect headcount.

Total expected annual cost savings from these announcements amount to around $45 million in 2024, reaching $85 million in 2025, and $110 million when fully implemented.

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Price Action: ALV shares are trading higher by 0.79% at $93.14 in premarket on the last check Monday.