Sandvik reduces workforce
First publishedon www.AggBusiness.com
Sandvik has announced that it is to reduce its workforce in Sweden by 365 employees.
The reduction affects employees at Sandvik Materials Technology and Sandvik Mining and Construction in Sandviken as well as employees at Sandvik Materials Technology in Hallstahammar.
The company says the reduction is a consequence of the Sandvik Group’s new strategic direction and organisation.
Sandvik Materials Technology introduced on 13 September, 2011, a comprehensive improvement programme (The Step Change Programme) that aims to increase profitability to a significantly higher and sustainable level and to strengthen the business area’s leading position in key segments.
One of the objectives of the programme is to sustainably reduce the overall cost structure by approximately 500million SEK [€405million] over a two to three-year period, through such measures as reducing costs for staff and administration in addition to cost optimisation of the sales organisation.
Following a review of the organisation, a structural redundancy corresponding to 500 employees globally has been identified, including about 295 employees in Sweden. In Sandviken, the 230 redundancies only affect salaried employees, while in Hallstahammar, 20 salaried employees and 45 employees under collective agreements are affected.
As a result of the Sandvik Group’s new strategy and organisation, the Sandvik Mining and Construction business area will be separated into two business areas, Sandvik Mining and Sandvik Construction as of 1 January 2012.
The changes are expected to result in a redundancy of 70 salaried employees in Sandviken.
The global review of Sandvik Mining and Construction’s organisation is still in progress.
“Our aim is to complete the work as quickly as possible to shorten the period of uncertainty for our employees,” says Jonas Gustavsson, president of Sandvik Materials Technology.
The changes are expected to be completed during the first half of 2012.