Swedish ball-bearing giant slashes 2,500 jobs
Published: 14 Jan 13 09:52 CET | Print version
Online: http://www.thelocal.se/45600/20130114/
Sweden's SKF, the world's biggest maker of industrial bearings, announced on Monday it was cutting 2,500 jobs, a move widely regarded as a tell-tale sign of tougher times ahead for the manufacturing industry.
- Sweden slashes 2013 growth forecast (21 Dec 12)
- Sweden to lower growth forecast: Borg (20 Nov 12)
- 'Free markets to thank for Swedish model success' (10 Sep 12)
"This will impact some 2,500 people primarily through early retirement and other voluntary and agreed reductions," SKF said in a statement.
The company's profits were down by a fifth last year.
SKF, which also makes sealants, is an important supplier to many parts of the industrial processing chain and is therefore regarded as a leading indicator of activity in manufacturing and machine tooling.
It has reported a drop in net profits for four quarters in a row. In the third quarter of 2012, it registered a net profit of 1.23 billion kronor, down 23 percent from a year earlier.
"We had a bad December, especially in the automobile market in Europe but also in North America and Asia," company spokeswoman Ingalill Östman told the business daily Dagens Industri.
"We expect it to continue at this lower level at the beginning of this year," chief executive Tom Johnstone said, adding that inventories were lowered by more than 600 million kronor.
Johnstone said SKF would report restructuring costs of 200 million kronor in the fourth quarter, as the first step of the programme and 100 million kronor for impairments and write-down of assets.
The annual savings from the first step would be 150 million kronor, and affect some 550 people primarily in Italy, Sweden, Ukraine and the United States.
The fourth quarter report is due to be published on January 30th.
AFP/The Local/at
Follow The Local on Twitter
What do you think? Leave your comment below.
Aid cuts would be 'devastating'
Criticism of the government's foreign aid policy is mounting as Swedish ambassadors, aid organizations and politicians slam Development Aid Minister Gunilla Carlsson's announcements that development assistance to several countries may be slashed. READ () »
Swedish forestry firm cuts 2,500 jobs
Forestry giant Stora Enso plans to let another 2,500 employees go, of whom 750 work in Sweden, citing weak markets and deflating profits. READ () »
Sweden among winners in future EU-US deal
Sweden is second in line to benefit the most from an EU free-trade deal with the US, for which negotiations were finally given the all-clear in a move welcomed by pro-business groups in Sweden. READ () »
New Telia CEO 'excited' about the job
TeliaSonera's new head Johan Dennelind believes he is the right man to restore the Swedish telecom giant's reputation after the company's Uzbek bribery scandal. READ () »
ABB board unanimous in pick of CEO
Swiss-Swedish engineering giant ABB has appointed a new CEO, who has a background in oil and gas, utilities, telecoms and automotive industries and who was a key player in the acquisition of Baldor. READ () »
Wine pulled because it was 'too good': supplier
Sweden's state-run liquor store monopoly has sent back 6,000 bottles of a Spanish wine because it tasted better than expected, according to a Swedish alcohol supplier. READ () »
Sweden may cut aid to Palestinian territories
Development aid minister Gunilla Carlsson has said that the Swedish government may reduce development assistance for the Palestinians since they have failed to reach a peace agreement with Israel. READ () »
Gothenburg corruption blamed on city culture
A hierarchical "Gothenburg Spirit" among politicians and civil servants contributed to a culture of corruption in the past decade, concluded a report on Sweden's second largest city. READ () »
Sweden abandons bid to lift EU snus export ban
The Swedish government has given up its efforts to force the European Union to scrap its ban on the export of snus, choosing instead to focus on protecting the popular moist tobacco product's use in Sweden. READ () »
'Swedish work-visa window too narrow'
Since 2008, migrants to Sweden can swap course from seeking asylum to seeking a work visa with the help of an employer. The Local speaks to one migrant who praises the system, while saying it could be improved. READ () »
- 12/06 Bankruptcy hits major Swedish free school firm »
- 11/06 US judge rejects Saab bankruptcy lawsuit »
- 10/06 Wolf 'massacre' leaves over 20 sheep dead »
- 10/06 AstraZeneca snaps up US inhaler company »
- 07/06 Prosecutor seeks docs in TeliaSonera bribes case »
- 07/06 Swedish dads stay home as mothers work »
- 05/06 Sweden's Meda denies India merger rumours »
- 05/06 Ikea founder steps down from key board post »
- 05/06 Google to power data centre with Swedish wind »
- 04/06 New smartphone app for Sweden's high flyers »
| 18/06 | Accounting SpecialistHays | Katowice, SLA |
| 18/06 | Agency General Manager ? Scandinavia | Göteborg |
| 18/06 | C++ Developer | Stockholm |
| 18/06 | Chemical Plant ManagerThe Valspar | Hendrik Ido Ambacht (NL) |
| 18/06 | Cloud ArchitectCapgemini Sverige AB | Malmö, SKÅ |
| 18/06 | Compliance Manager - NordicsAce European Group Ltd | Stockholm |
| 18/06 | CPL Ireland - Swedish CollectionsCPL Ireland | Malmö |
| 18/06 | CPL Ireland - Swedish or DanishCPL Ireland | Malmö |
| 18/06 | Enterprise Services Solution Architect | Sverige |
| 18/06 | Financial Reporting Product Manager | Sverige |
- 18/06 German investor confidence on the up »
- 18/06 Commerzbank 'to shed 5,000 jobs' »
- 18/06 Deutsche Bahn fires staff in corruption clean-up »
- 17/06 Sun sets on Siemens solar division »
- 17/06 Motorists flush away millions in toilet tickets »
- 14/06 Germany joins EU youth unemployment fight »
- 14/06 Canny footballer shoots, scores, is banned »
- 13/06 Rat poison found at Lidl supermarkets »
- 13/06 Berlin: EU can find 'good solution' to US free trade »
- 12/06 German chains 'ignore Turkish shoppers' »
- Goodyear Dunlop Tires Nordic - Head of Business Control
- CPL Ireland - Swedish Collections
- CPL Ireland - Swedish or Danish
- Interaction Recruitment - Swedish
- MGI Recruitment - Swedish Inside Sales
- Projob NL - Swedish and English
- Projob NL - Swedish and English
- RECA Young Professional Program/Trainee
- SITS i Göteborg söker Danslärare
- SITS i Oslo söker Lärare (även
- 07:19 Campervan in -30?
- 05:08 Prospects of a medical residency in Sweden
- 02:03 Wedding Dress WANTED!
- 22:50 Planning on moving to Sweden from USA
- 22:46 Was it you I saw in Stockholm?
- 21:53 Swedish health care system
- 19:27 Is Edward Snowden Victim Of Chinese Honey-Trap?
- 17:49 Help with visas!
- 16:58 Study to be a Primary School Teacher
- 15:59 Sweden vehicle emissions laws?
Create an account with Banc De Binary, the world’s most reputable binary options firm, and start cashing in today! You can start by practicing with our free $50,000 demo account.
www.bbinary.com
Expat counsellor & talk therapist offers counselling for stress, relationship issues, sexuality, culture adjustment & life coaching. Private & confidential. Stockholm or Skype. Contact me today! 08-559 22 636 or
CLICK HERE
Find products and services that are specifically focused on English speakers living in Sweden!
FULL DETAILS
Individuals & Couples - Stockholm Beth Rogerson PhD - Clinical, Marriage & Family Therapist
Click or call 08-5580 1266 now
Your comments about this article:
The comments below have not been moderated in advance and are not produced by The Local unless clearly stated. Readers are responsible for the content of their own comments. Comments that breach our terms and conditions will be removed.
Hopefully most of these jobs can go through a leaning process, but if hard times continue, then they'll be no slack and it will be much tougher on the work force.