SG&A Cost Reduction – Overhead rightsizing
Within three months, H&Z and an automotive supplier identified and implemented SG&A levers, reducing overhead costs and boosting profitability across global functions.
Client Challenge
The client faced increasing cost pressure as key OEM customers delayed or cancelled EV production programmes. While the company had proactively invested in e-mobility capabilities, the resulting overhead structures proved too heavy amid declining revenues. A swift realignment of SG&A functions was required to restore profitability and competitiveness.
H&Z Approach
H&Z partnered with the client’s leadership to develop a pragmatic and targeted overhead optimisation program. To lay the foundation, a task analysis was conducted across all group functions to differentiate core from non-core activities and uncover structural inefficiencies. Building on this, in-depth interviews with vice presidents helped identify concrete savings levers and define high-impact measures. C-level workshops ensured early alignment, transparent decision-making, and prioritization of actionable initiatives. To validate the proposed measures, benchmarking against leading automotive suppliers was performed, allowing the customer to position itself competitively with a future-proof overhead setup. The structured, collaborative approach combined analytical depth with leadership involvement to ensure feasibility, acceptance, and long-term effectiveness of the solution.
Results
- 10% overhead cost reduction achieved, delivering approx. €3.5M P&L impact in the upcoming year
- Severance cost analysis: Quantified financial implications based on national labour regulations
- Actionable cost reduction roadmap: Delivered a DIO-structured measure catalogue by group function
Get in Contact with our experts
Contact H&Z to learn how a targeted SG&A cost reduction approach can sustainably boost EBIT margins and strengthen long-term competitiveness.
