Published: 2024-01-25 09:09
Sandvik is to go through a major restructuring program which, among other things, means that 1,100 employees will be forced to leave the company.
The restructuring should generate savings of SEK 1.2 billion annually.
Sandvik has decided to implement a new restructuring program.
The program will generate annual savings of approximately SEK 1.2 billion, according to the press release. Of the total annualized savings, approximately 80 percent is expected to have been realized by the end of 2024 and approximately 100 percent by the end of 2025.
Of the planned savings initiatives, 85 percent are structural and 15 percent volume-related.
Staff reductions
— We are constantly investigating how we can improve our operational efficiency and strengthen the company’s resilience. Enforcing efficiency measures in different ways also becomes important in times of macroeconomic uncertainty. These initiatives increase our resilience at the same time as they further strengthen our ability to take advantage of future growth opportunities, says Stefan Widing, President and CEO of Sandvik.
The costs of the restructuring are expected to amount to approximately SEK 2.4 billion. From the press release, it appears that of the SEK 2.4 billion, approximately SEK 0.7 billion does not affect cash flow, and the remaining SEK 1.7 billion is mainly related to staff reductions of a total of approximately 1,100 employees.
