Sandvik issues layoff under restructuring

Equipment maker Sandvik said it will be cutting 1,100 as part of a cost-saving restructuring effort.

The company, which said it will also be consolidating production units and optimizing its organizational structure, said orders from majors were at a good level but it had seen a decrease in business from smaller operators as well as from the infrastructure market.

The program will generate annual savings of about SEK 1.2 billion, or US$115.9 million. The share of total annualized savings expected to be reached by end of 2024 and end of 2025 are approximately around 80% and 100%, respectively. Out of the planned savings initiatives, 85% are structural and 15% are volume related.

“We are always reviewing options to improve our operational efficiency and enhance the resilience of the company. Driving efficiency in various ways also becomes important in times of macro-economic uncertainty. These initiatives will make us more resilient as well as further improve our ability to capture the growth opportunities ahead,” said Sandvik President and CEO Stefan Widing.

He added in a public call: “The longer it goes on, the more troublesome it might become … it will also contribute to a new uncertainty on the logistics front just when we thought things had normalized.”

Widing confirmed costs related to the restructuring are expected to amount to SEK 2.4 billion (US$231.8 million).

Sources: Sandvik and Reuters

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