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Turkish electronics company Vestel is pursuing a long-term restructuring plan to adapt to technological change, shifting consumer demand, and global competition as it faces shrinking production, weaker sales, and a rising gross debt burden in 2025 reaching ₺147.59 billion ($3.57 billion), according to company executives.
Marketing General Manager Duygu Badem Uylukcuoglu explained that the process is aimed at building stability rather than quick results. "This is not a sprint, it is a marathon," she said, adding that each division is reorganizing to meet evolving expectations.
"Even with ups and downs, we have broken the balance upward," Uylukcuoglu added, stressing that despite fluctuations, the company is moving in a positive direction. "I cannot go into detail on figures, but I can say that every quarter we will get better. The way we operate has changed, and teams are being restructured," she told business-focused ekonomim.com.
Vestel reported its steepest quarterly loss in the second quarter of 2025, posting a net loss of ₺12.64 billion, the worst result among all publicly traded companies. Its total liabilities were nearly four times larger than its equity capital of ₺38.94 billion.
The company's production volumes in the first half of 2025 declined by 35% compared with the same period in 2024, with net sales falling 16% in lira terms and 21% in units. Gross sales totaled ₺75.41 billion, of which ₺43.84 billion came from exports.
Of the total, 46% of sales were to European countries, 42% to Türkiye’s domestic market, and 12% to other destinations.
Gross domestic sales revenue decreased by 17% year over year in the first half, while export revenue fell by 13%. Exports remain central to operations, contributing $2.3 billion annually to the company’s overall $4 billion turnover. Vestel currently employs about 16,000 people.
Earlier this year, Vestel confirmed plans to lay off 2,000 employees as part of its restructuring program. The move followed falling sales in both Europe and Türkiye, alongside a rapidly increasing debt burden at the company and at parent group Zorlu Holding.
To counter financial strain and maintain competitiveness, Vestel continues to invest in research and efficiency, Uylukcuoglu said, noting that research and development (R&D) accounts for 4% of revenue—one of the highest ratios among Turkish manufacturers. According to the company’s latest financial report, it spent ₺3.21 billion on investment in the first half of 2025.
"Operational efficiency and technological upgrades play a major role in keeping costs under control," she said. Profitability of the company has already begun to recover in the second half of the year, supported by inflation accounting standards that allow financial results to be read more clearly, she noted.
Vestel also faces mounting challenges in Europe, as Foreign Trade General Manager Seckin Gencoglu pointed out, including rising energy costs, logistics bottlenecks, and intense price pressure from Asian imports.
According to GfK, the largest German market research company, the European white goods market across 24 countries grew by 2% in the first half of 2025 compared with a year earlier. Among the five largest EU markets, the United Kingdom, Italy, and Spain expanded by around 4%, while Germany and France contracted by about 1%, leaving overall EU5 growth at 1%.
He referred to a recent initiative by the European home appliance association APPLiA, which wrote to European Commission President Ursula von der Leyen calling for equal competitive conditions. "A second letter is already being prepared," he said, stressing that the sector generates €79 billion in value and provides employment for 1 million people.
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