Skanska to cut 2,000 jobs in Sweden

Swedish construction giant Skanska announced on Tuesday it would be shedding 2,000 jobs in Sweden and an additional 1,400 around the Nordic region.

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The measures will affect administrative staff as well as personnel at project level and will be implemented throughout 2009.

“I regret that this affects so many employees and their families. In the current situation, it is unfortunately necessary to adapt our organization and our costs to a lower business volume in the Nordic construction markets,” said Skanska’s President and CEO Johan Karlström in a statement.

In announcing the job cuts, the company pointed to an expected 15 percent drop in order volume for the Nordic region in 2009 due to a “sharp decline” in the residential construction market as well as a weakening in other segments.

Skanska expected the personnel reductions to cost the company about 600 million kronor ($75 million) and said it will charge the costs to the fourth quarter earnings for 2008.

The company added that negotiations with unions had begun and that it plans on providing support activities to those affected.

In addition to the 2,000 positions to be eliminated in Sweden, an additional 600 jobs in Finland and 800 staff in Norway will also be made redundant.