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Sweden's SKF to cut 2,500 jobs worldwide

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Sweden's SKF to cut 2,500 jobs worldwide
08:55 CET+01:00
Swedish ball bearings manufacturer SKF announced on Tuesday that weakening demand in the automotive and industrial sectors has forced the company to trim its global workforce by 2,500 jobs.

While the company projects volume to decrease by 15 percent compared to last year, SKF still expects to report a fourth quarter operating profit between 1.6 and 1.7 billion kronor ($196 to 208 million).

While no jobs will be lost in Sweden, around 1,200 full time positions will be cut mainly in SKF's Automotive Division, primarily affecting operations in the United States, France, Italy, Ukraine, Brazil and Argentina.

In addition, SKF plans to terminate contracts with 1,300 temporary employees and to place about 2,400 other employees an shorter working hours by the end of the quarter.

“The negative development within the automotive business has accelerated during the fourth quarter leading to significantly weaker demand than foreseen. Many customers have reduced production and are taking an extended shutdown period in December and January,” said SKF in a statement.

The company added it expects the cost of the restructuring efforts to cost around 470 million kronor, with 340 million kronor to be charged in fourth quarter.

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