Outdoor power equipment maker Husqvarna Group plans to cut costs with layoffs in several countries. The company will cut about 600 employees, with almost half in Sweden, mainly in the town of Huskvarna.
"I regret that we have to reduce the number of employees," said President and CEO Hans Linnarson "The proposed measures aim to improve efficiency, reduce the fixed cost base and further increase flexibility."
The company is planning to implement the cuts over the first six months of 2013 after union negotiations. Cost savings of around SEK 220 million (approx. US$33 million) will be achieved during 2014. In 2013 cost savings are estimated at about SEK 160 million. Costs for implementing these measures are estimated at SEK 250 million.
The company expects to see cost savings of around SEK 50 million in 2013. The savings relate to restructuring that was announced earlier, including relocation of manufacturing from Sweden to Poland, which began in 2010.
to Daily News