November
7 -- Husqvarna Group plans measures to improve the Group's cost structure. The
measures include layoffs in several countries, including Sweden.
The
proposed measures include a reduction of approximately 600 employees, whereof
almost half are in Sweden, mainly in Huskvarna.
"I
regret that we have to reduce the number of employees. The proposed measures
aim to improve efficiency, reduce the fixed cost base and further increase
flexibility," says Hans Linnarson, President and CEO of the Husqvarna
Group. He continues: "Even though we make reductions in Huskvarna, it will
continue to be a very important unit to us."
Measures
are planned to be implemented during the first six months of 2013 after
negotiations with the respective unions. Cost savings will be achieved
gradually and full annual effect of around SEK 220m will be reached during
2014. For 2013 cost savings are estimated at around SEK 160m. Costs for
implementing these measures are estimated at approximately SEK 250m, which will
be charged to the operating income for the fourth quarter of 2012.
In
addition to the above, the Group will during 2013 also benefit from cost
savings of around SEK 50m. The savings relate to measures under previously
announced restructuring, including relocation of manufacturing from Sweden to
Poland, which began in 2010.
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