Sandvik reduces workforce in Sweden and Reveals Latest Results
Sandvik is cutting 365 jobs in Sweden. The reduction affects employees at Sandvik Materials Technology and Sandvik Mining and Construction in Sandviken, as well as employees at Sandvik Materials Technology in Hallstahammar. The company says that the workforce reduction is a consequence of the Sandvik Group’s new strategic direction and organization.
At the same time the company revealed its latest financial figures stating that there was a strong order intake though earning were affected by one- of items. The essentials of the financials are
Order intake 24,825 MSEK
• Invoiced sales 23,528 MSEK
• Operating profit 1,665 MSEK
• Operating margin 7.1%
• Adjusted operating profit 3,378 MSEK
• Adjusted operating margin 14.4%
• Cash flow from operations SEK +2,614 M
• Announced personnel reduction
On 13 September 2011 Sandvik Materials Technology introduced a comprehensive improvement programme that aims to increase profitability to a significantly higher and sustainable level and to strengthen the business area’s leading position in key segments.
One of the objectives of the programme says the company is to sustainably reduce the overall cost structure by approximately 500 MSEK over a two to three year period, through such measures as reducing costs for staff and administration in addition to cost optimization of the sales organization.
This adds up to 500 job losses globally has been identified, of whom about 295 employees in Sweden (230 in Sandviken and 65 in Hallstahammar). In Sandviken, the redundancies only affect salaried employees. In Hallstahammar, 20 salaried employees and 45 employees under collective agreements are affected.
Earilier this year the Sandvik Group outlined a new strategy and organization, the Sandvik Mining and Construction business area will be separated into two business areas, Sandvik Mining and Sandvik Construction as of 1 January 2012. The changes are expected to result in a redundancy of 70 salaried employees in Sandviken. The global review of Sandvik Mining and Construction’s organization is still in progress. “Our aim is to complete the work as quickly as possible to shorten the period of uncertainty for our employees,” says Jonas Gustavsson, President of Sandvik Materials Technology. The changes are expected to be completed during the first half of 2012.