MORTSEL, BELGIUM — Imaging technology company Agfa has unveiled a cost-saving plan that may lead to significant job reductions, potentially impacting up to 530 employees in Belgium.
The announcement came on Thursday, when the Mortsel-based company, known for its imaging and IT solutions across healthcare, industrial, and printing sectors, shared details of the restructuring plan with Belgian social partners at an extraordinary works council meeting.
The restructuring effort aims to reduce costs by €50 million by the end of 2027, primarily by adjusting its traditional film activities to align with current market demands.
This part of Agfa’s business, which has seen a notable decline, includes radiology solutions and medical film sales — sectors that have been adversely affected by digital advancements and shifting customer preferences.
“While we are convinced that the proposed measures are necessary for the future of our company, we are also very aware that this message might cause anxiety and uncertainty among our employees,” said Agfa-Gevaert Group CEO Pascal Juéry.
“We will do our utmost to maintain a constructive social dialogue with the social partners involved and keep the period of uncertainty as short as possible.”
The restructuring plan is likely to impact various levels within Agfa’s workforce, including blue-collar and white-collar workers as well as management positions.
However, the company emphasized its intention to avoid forced redundancies, instead aiming to rely on natural staff turnover, reassignments, and encouraging re-employment to reduce the need for layoffs over the next three years.
Agfa, which employed over 4,800 individuals by the end of 2023, including nearly 2,300 in Belgium, attributes the restructuring to the economic realities of its traditional film activities.
The company has faced challenges in recent years, compounded by an accelerated decline in the market for traditional imaging products and materials.
Third Quarter Financials Reflect Struggles in Film Market
Agfa also released interim results for the third quarter of 2024, revealing significant setbacks in its radiology solutions segment.
Revenues in this segment fell by 10.6%, while adjusted EBITDA — a key metric representing earnings before interest, taxation, depreciation, and amortization — dropped by 48.3%, underscoring the difficulties Agfa faces in sustaining profitability within its traditional film business.
The company’s total revenue for the third quarter amounted to €277 million, a slight decline from €280 million during the same period last year.
However, the company’s adjusted EBITDA for the quarter dropped by 10.8% to €15 million, with the decrease primarily attributed to reduced fixed-cost coverage within its traditional film activities.
Agfa acknowledged these financial challenges, noting that the decline in demand for film products has impacted the company’s cost structure and ability to cover fixed expenses.
The ongoing shift from analog to digital solutions in medical and industrial imaging has presented headwinds for Agfa’s film business, prompting the company to adapt in order to maintain financial stability.
Future Prospects
Despite the restructuring plans, Agfa remains committed to exploring measures to support affected employees. The company stressed that it intends to continue engaging with social partners to mitigate the impact of the proposed cuts.
CEO Pascal Juéry reiterated that the company will work to shorten the period of uncertainty for its employees and foster open dialogue with stakeholders throughout the restructuring process.
As Agfa navigates this transition, it seeks to sustain long-term viability while responding to evolving market conditions.
The announcement has sparked concern among Agfa employees and within the broader Belgian labor community, who are awaiting further updates on the implementation of the proposed cost-saving measures.
