• Sweden edition
 
SCA to slash 1,500 jobs in cost-cutting bid

SCA to slash 1,500 jobs in cost-cutting bid

Published: 05 Nov 2012 12:10 GMT+01:00
Updated: 05 Nov 2012 12:10 GMT+01:00

“A new efficiency programme has been initiated within the hygiene operations to further reduce costs and increase productivity," SCA President and CEO Jan Johansson said in a statement.

"It will provide annual cost savings of some €300 million, with full impact in 2015. About 1,500 employees are affected and costs are expected to amount to €100 million."

Spokesman for SCA, Petter Tiger, wasn’t able to say exactly where the cuts would be made:

“We will be looking at every division,” Tiger told the TT news agency, without being able to disclose how many of the company’s workers in Sweden will be affected.

Currently SCA has some 37,000 employees. The 1,500 redundancies in the hygiene operations mean that 4 percent of the overall work force will be cut.

26,000 of the 37,000 employees are currently working within hygiene product manufacturing. It is still unclear how many of the redundancies will affect workers in Sweden.

The cuts in the hygiene operations are made despite strong third quarter sales, profits and profitability.

Since launching the efficiency programme in 2011, the company has achieved more than half of the expected annual savings of €80 million.

During the past year, SCA completed a number of major acquisitions and divestments. The hygiene operations currently account for 80 percent of SCA’s sales, with the majority in Europe.

The company nevertheless plans to retain its previous targets of a 13 percent return on capital employed over a business cycle, a debt/equity ratio of 0.70 and a debt-payment capacity of 35 percent.

The dividend policy is to pay out one-third of cash flow from current operations, the company said.

Founded in 1929 by Swedish industrialist Ivar Kreuger, better known as the "Match King", SCA is one of the world's largest forestry and packing products firms, as well as Europe's largest private owner of forest land.

TT/Rebecca Martin

twitter.com/thelocalsweden

Don't miss...X
Left Right

Your comments about this article

14:03 November 5, 2012 by Grokh
great, its funny when the crisis first hit everyone said "people need to spend".

but since most countries if not all have huge income inequality, the idea started going for cuts and savings.

meaning more ppl lose their jobs, and less people consume.

capitalism cant work if everyone is saving money and firing employees.

if only producers of goods have money and they cut their work force more and more, who the hell will buy the crap they make?
09:32 November 8, 2012 by smilingjack
too much profit is never enough. in the world of capitalism its go forward or be taken over. Its inevitable that every major company in the world will be owned by just a few. Apple and Samsung have already seen to the demise of Sony, Panasonic and Sharp who are just about finished. Apple is spending a squillion a year trying to destroy Samsung ( gratefully this wont happen ). Apple has also said they have enough cash to buy the rights to every piece of media in the world. Can you imagine a world where everything you watch and listen to is via Fox and Apple.

I agree capitalism cant work without consumers. But in the bigger picture its destroy your competition first. Even if that involves killing millions of civilians ( sorry terrorists ).
10:35 November 11, 2012 by spacecowboy
Cutting jobs to cut costs, but at the same time SCA is sponsoring a volvo ocean race team to the tune of 15 million Euros!

http://www.vsail.info/2012/11/02/richard-brisius-manager-of-first-volvo-ocean-race-entry-team-sca-talks-to-vsail-info-part-ii/

Nice, good to see they have their priorities in order!
Today's headlines
Listeria fears prompt meat recall in Sweden
File photo: Andreas Hagerman/Flickr

Listeria fears prompt meat recall in Sweden

After finding traces of listeria in ham sold in Sweden, food companies decided on Friday to recall several Danish cold cuts. READ  

Sweden Floods
More rain expected as floods hit day four
Photo: Anders Kjellberg/TT

More rain expected as floods hit day four

UPDATED: Sweden's floods showed no signs of abating over Thursday night, with highways closed, emergency teams working overtime, and more rain on the way. READ  

Ikea opens first store in the Balkans
An Ikea city centre store in Hamburg. Photo: TT

Ikea opens first store in the Balkans

Swedish furniture giant Ikea has opened its first store in the former Yugoslavia, near Croatia's capital Zagreb. The move marks the company's first step in an expansion to the Balkans market. READ  

Elections 2014
'Sweden Democrats hold the key to elections'
Jimmie Åkesson. Photo: Bertil Ericson/TT

'Sweden Democrats hold the key to elections'

With national elections around the corner, political scientist Stig-Björn Ljunggren says there's a hive of activity behind the scenes, and that the right-wing nationalist party could end up being the key player. READ  

Swedish artist jailed for 'race hate' pictures
Police arrested Dan Park (pictured) and confiscated his art works at an exhibition opening on July 5th. Photo: Drago Prvulovic/TT

Swedish artist jailed for 'race hate' pictures

A Malmö court has sentenced Swedish street artist Dan Park to six months in jail for incitement to racial agitation and defamation. READ  

Elections 2014
Sweden elections: How do they work?
Casting a vote. Photo: Shutterstock

Sweden elections: How do they work?

National, regional, and local elections are taking place in Sweden on September 14th. Whether you're a first-time voter or a fresh armchair observer, The Local's beginners' guide will answer the key questions you were too afraid to ask. READ  

Sweden orders textbook on Roma discrimination
A Romani language class in Malmö. Photo: Drago Prvulovic/TT

Sweden orders textbook on Roma discrimination

The Swedish government has asked a new commission to create school materials based on a white paper documenting Swedish discrimination of Roma. READ  

Day-care rapist
Day-care rape suspect 'was mentally ill'
Photo: TT

Day-care rape suspect 'was mentally ill'

Social services have ruled that a day-care intern charged with molesting 14 children in southern Sweden was "seriously mentally disturbed". READ  

What's On in Sweden

What's On in Sweden

Autumn has arrived in Sweden, which means grey skies are approaching. But summer goes out with a skip, hop, and a bang - the annual Color Run is taking place in Stockholm this weekend. READ  

Surströmmingspremiär
Swedes celebrate first day of smelly fish season
Photo: Hasse Holmberg/TT

Swedes celebrate first day of smelly fish season

On the third Thursday of each August, Swedes celebrate the start of the fermented herring season. The Local finds out more about the worst-smelling food on earth, and collects some of the best reaction videos. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Finest.se
Gallery
People-watching August 20th
Society
Did you know the Bronx in NYC was named after a Swede?
Politics
"Iraq reminds me of the Yugoslav wars. It's the same story."
Society
Swedes slam Danes for 'racist' art
National
Majority of Swedes favour more or just as many refugees
Blog updates

17 August

Sea Fever (Around Sweden in a kayak) »

"I’m going to keep this post short and sweet as its not something I take any pleasure in writing. After much deliberation I have made the heartbreaking decision to abandon my trip after 1200km due to reoccurring injury. It is not a decision I have made lightly and it is one that has been truly devastating..." READ »

 

17 August

St. Louis strong (Blogweiser) »

"It’s typically a bad sign when my hometown makes news in Sweden. St. Louis was in the headlines here a few years ago when a tornado struck the airport. The city also caught attention after a politician talked about ‘legitimate rape’. Now, shooting and riots this week in Ferguson, a part of St. Louis, are..." READ »

 
 
 
Society
Lock your bathrooms: Swedish toilet invader on the the loose
Politics
'Assange will not leave until safe'
Gallery
See more images from the southern Sweden floods
Sponsored Article
Find out what gives this Swedish school executive appeal
Society
Serial chicken smuggler caught at Norway border. Again.
Society
This gold coin may be the key to solving a Swedish massacre
Shutterstock
Lifestyle
The Swedish mentor (and why you may need one)
National
Food agency warns girls: 'Don't eat stinky fish'
Politics
Reinfeldt calls for tolerance to refugees
Gallery
People-watching August 16-17
National
Sweden celebrates 200 years of peace
Society
Top ten literal Swedish words
Politics
'Terror training should be illegal': Liberal Party
Gallery
Swedes talk about 200 years of national peace
Politics
Islamic extremist shakes Sweden with TV threat
National
Teacher fined for 'Hitler salute' in German class
National
Swede asks for epidural and gets disinfectant
Features
Kiruna residents talk life in a town on the move
National
Swedish dad takes kids to Israel to learn about war
Skatteverket
Sponsored Article
Introducing... ID cards and permits in Stockholm
Sponsored Article
Introducing...Your finances in Stockholm
Sponsored Article
Introducing...Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

703
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se