Husqvarna Plans Cuts
Husqvarna AB said it plans to cut about 600 jobs in a move that will save $33 million a year by 2014. "The proposed measures aim to improve efficiency, reduce the fixed cost base and further increase flexibility," Chief Executive Officer Hans Linnarson said in a statement. Almost half the job losses will come in Sweden, mainly in Huskvarna, where the company is based, it said.
The cuts will be carried out during the first six months of next year after negotiations with unions. The move will cost about $37 million to implement, which will be charged to fourth-quarter operating income, the company said.
Husqvarna, with about 15,860 employees at the end of the third quarter, has about 40% of its sales in the Americas and said Oct. 26 that demand there and in Europe continued to be challenging during the third quarter.