The 2020 Mid-Year Economic Update_long

Sandvik to Layoff 1,500; Cut Temporary Jobs

Responding to weak global demand, Swedish manufacturer Sandvik Group announced efforts to reduce overcapacity and increase productivity at many of its facilities. The measures include lay-offs, termination of temporary contracts, and the closure of a production unit in Perth, Australia.
 
The global market trend is currently very weak. The decline described in conjunction with the report for the third quarter has deteriorated significantly in several segments, primarily relating to the automotive and engineering industries. Consequently, these measures have been deemed necessary, while we cannot rule out the need for additional measures at a later stage,"says Lars Pettersson, president and CEO of Sandvik AB.
 
For Sandvik Materials Technology, the company ...

Responding to weak global demand, Swedish manufacturer Sandvik Group announced efforts to reduce overcapacity and increase productivity at many of its facilities. The measures include lay-offs, termination of temporary contracts, and the closure of a production unit in Perth, Australia.
 
The global market trend is currently very weak. The decline described in conjunction with the report for the third quarter has deteriorated significantly in several segments, primarily relating to the automotive and engineering industries. Consequently, these measures have been deemed necessary, while we cannot rule out the need for additional measures at a later stage,”says Lars Pettersson, president and CEO of Sandvik AB.
 
For Sandvik Materials Technology, the company expects to layoff 1,500 people, primarily at two sites in Sweden. These layoffs are in addition to the layoffs of 380 people that occurred in the second quarter of 2008. The process is expected to be completed during the first six months of 2009.

Temporary contracts for about 600 people within Sandvik Mining and Construction have been terminated, with the potential for temporary layoffs of an additional 200 people on Dec. 1. Manufacturing at the facility in Perth, Australia, will be transferred to Brisbane, Australia, and Santiago, Chile.
 
Sandvik Tooling terminated contracts with 300 temporary workers. The unit plans to reduce production by introducing four-day work weeks at some sites, and close other units for two to three weeks.

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

0

articles left

This is your last free article

Subscribe to MDM Premium today and get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.