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Husqvarna slashes staff in Sweden as profits fall

TT/The Local · 23 Oct 2009, 10:49

Published: 23 Oct 2009 10:49 GMT+02:00

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The firm also announced that it plans to increase its workforce in China.

The changes to the firm's structure will result in the loss of 200 jobs in Sweden and impact a total of 1,200 jobs within the concern worldwide.

Husqvarna plans also to consolidate its sales organisation in Europe and Asia as well as the Pacific rim area, the company explained in a statement in connection with the publication of its third quarter figures on Friday.

The workforce at Husqvarna's plants in China and Poland will be increased and thus the net job losses will come in at 400.

The programme of cuts announced by the firm include the closure of the so-called Rider factory in Huskvarna in south-central Sweden, the factory in Tansbyn near Östersund in northern Sweden, and the lawn mower facility in Höör in southern Sweden.

The firm's Spanish production will also be hit with the announcement to concentrate construction sector products manufacture in Ödeshög in south-central Sweden.

The announcement of the cuts comes as the firm, which manufactures lawn-mowers and power tools among other things, reported a drop in profits for the third quarter.

Profits after financial items amounted to 108 million kronor ($15.9 million), in comparison with a profit of 178 million kronor in the corresponding period of 2008.

"Uncertainty over future orders remains as a result of the recession and retailers are expected to retain stocks at a low level," Husqvarna writes, forecasting that deliveries are expected to decline in comparison with the corresponding period of 2008.

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CEO Magnus Yngen in the firm's report described the market situation as "significantly weaker" during the third quarter in comparison with the corresponding period of 2008.

The reorganization is forecast to cost the firm around 400 million kronor to complete, of which 59 million kronor will be filed in the report for the fourth quarter 2009.

Once completed the measures are predicted to cut the firm's overheads by 400 million kronor per annum.

TT/The Local (news@thelocal.se)

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Your comments about this article

11:55 October 23, 2009 by sebseb
Yep, the economic crisis is over... The proof is that new jobs are created in China.
12:44 October 24, 2009 by Sofiawemiss
i agree the economy is on the recovery side. we too here in the USA are losing jobs all the time to China, Mexico and other countries that have people that will work for pennies per day.

Having our big companies in these countries only hurts the total market.

Too much greed and not enough pride is some of the issues
14:53 October 24, 2009 by bocale1
@sebseb, @Sofiawemiss, you have a point here but let's take this argumentation further; you are a manager, you have a specific target, increase your profitability, and 2 business cases: keeping the European and US factory or open/extend one in China where people work about 12 hrs a day, 6 days a week, can be replaced in a day, cost 20% (not 20% less, just 20%).

What you would do? I tell you that we all would do exactly the same.

And this will continue until the Chinese costs will increase at the European level (or, most likely, the 2 costs will meet somewhere in the middle). Which means a total disaster for the European and US quality of life.

Summarising, we will be slowly destroyed by the system we have built. Another alternative is to start a new cold war somewhere and stop the possibility to cooperate with "evil" (and cheap!) countries. Sad and hopeless, indeed.
01:05 October 26, 2009 by 2394040
Don't you think it's ironic that the so-called free world crawls in bed, economically speaking, with one of the largest slave states in the history of the world?

But isn't that the goal of the New World Order: to create a one-world political and economic union? And the basis of the new one-world system will be the suppression of freedom and the re-institution of slavery.

The affluent will be the slavers, and everyone else will be their slaves.
10:00 October 26, 2009 by Staffs
Every country is a slave state, and property tax is the biggest indicator of that.

Property tax forces everyone to be a part of the system, and to be forced to work to pay to live in a dwelling. That is slavery.

Property tax has it's roots from the British in South Africa, when the natives didn't want to work the British levied a property tax which meant the natives had to work to avoid seizure of property.

Property tax enforces slavery.
02:45 October 31, 2009 by beeker
So let the Chinese buy Chinese Husky chainsaws. My next purchase will be a Stihl until they shift production to China or Vietnam. its false economy to produce a high cost product offshore just so the managers can make production targets and incresase their bonuses while production workers (also customers) sit home collecting a welfare or unemployment check paid for by taxpayers.

Henry Ford paid his workers enough to be able to buy a model T.
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