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Engineering firm Sandvik cuts jobs, production

Engineering firm Sandvik cuts jobs, production

Swedish engineering firm Sandvik AB Thursday announced a series of production cuts and layoffs, among which 1,040 permanent workers in Sweden, saying the negative impact of the global financial crisis has accelerated in the fourth quarter.
The company said it has given notices to 900 workers at its facility in Sandviken and 140 staff in Hallstahammar, both in central Sweden.
It also said it will close a production plant in Perth, Australia, affecting 50 employees, by Jan. 31, and has ended temporary contracts with around 600 people globally in its mining and construction unit.
Sandvik said it has reached an agreement for a temporary 90-day layoff of around 200 staff in Tampere, Finland, starting Dec. 1.
The company's tool's division will also end contracts with 300 temporary workers, and use flexible working hours and similar solutions at plants in Sweden. This means some units will close for 2 to 3 weeks, while others will temporarily introduce 4-day work weeks.
"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," Chief Executive Lars Pettersson said in a statement. "We cannot rule out the need for additional measures at a later stage."