Key insights
- Varta, an Apple supplier, will cut 350 jobs and halt button cell production after losing its largest client, reportedly Apple. A Chinese supplier will replace Varta. This signals potential supply chain shifts for Apple and increased competition in the battery component market, posing a minor negative risk to US equity sentiment in the short term.
Investing.com -- German battery manufacturer Varta will eliminate 350 positions and cease button cell manufacturing at its facility in Noerdlingen following the loss of its largest client, the company announced Tuesday.
The workforce reduction will impact approximately 350 employees across the Noerdlingen plant and the company’s headquarters in Ellwangen.
The contract with the unnamed customer is set to expire at the end of October.
The Noerdlingen facility primarily manufactures rechargeable CoinPower button cells for Apple’s AirPods. A source indicated that a Chinese supplier will provide these components going forward.
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