Gigaset AG and employee representatives agree on key points of company restructuring

Munich, March 7, 2016 - Gigaset AG has reached an agreement with the employee representatives on the key points of the announced job cuts. The aim of the mutual agreement is to get the company back on track for success.

In Germany, 325 jobs will be cut at the Bocholt, Düsseldorf and Munich locations. A further 35 jobs will be converted into partial retirement positions. Activities at the Düsseldorf location will be moved to the Munich and Bocholt locations by December 31, 2017 at the latest. In addition, the Executive Board and employee representatives have reached a settlement regarding a new special collective bargaining agreement, which includes pay cuts and an increase in weekly working hours to 38 hours. The contract is effective from March 1, 2016.

"Job cuts are hard, but there is absolutely no doubt about their necessity. This step is key to the company's future. In the talks with the employee representatives, we achieved a socially compatible and responsible package for the employees concerned," says Klaus Weßing, CEO of Gigaset AG. "Our new beginning involves more than just a modern organizational and cost structure. We will extend our leadership in technology and quality through focused research and development activities, thus laying the foundation for profitable growth. Our task now is to put all our efforts into further developing the company."

Over the past few weeks, the company has identified and will now focus on projects in its three business segments of Private Customers, Business Customers and Home Networks. "We are well equipped for the future. The adopted measures will allow us to annually save a double-digit million amount as soon as the restructuring is completed. That will be the case from 2018. Moreover, we are free of bank liabilities, have a solid equity base and healthy liquidity. The key points now agreed have added a further crucial component," adds Hans-Henning Doerr, CFO of Gigaset AG.

Gigaset AG, Munich, is an internationally operating company in the area of communications technology. The company is Europe's market leader in DECT telephones. The premium supplier is likewise the leader worldwide with around 1,250 employees and sales activities in around 70 countries. Under the name Gigaset pro, the company continues to develop and market innovative business telephony solutions for small and medium-sized enterprises. The company also operates in the smart home arena. Cloud-based security solutions are developed and marketed under Gigaset elements.

Gigaset AG is listed in the Prime Standard of Deutsche Börse and is therefore subject to the highest transparency requirements. Its shares are traded on the Frankfurt Stock Exchange under the symbol GGS (ISIN: DE0005156004).

Press Contact:
Raphael Dörr
Press Spokesman Gigaset AG
Telefon: +49 (0)89 444 456 866

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