STOCKHOLM Nov 7 Garden equipment maker
Husqvarna said on Wednesday it would cut around 600
staff as it looks to offset flagging demand by reducing costs.
The company said new measures would reduce annual costs by
220 million crowns ($32.85 million) with full effect in 2014.
The company will take a roughly 250 million crown charge in the
Around half the redundancies will come in Sweden.
"Unfortunately we have to cut staff. The proposed measures
are aimed at improving efficiency, reducing fixed costs and
making a more flexible structure," chief executive Hans
Linnarson said in a statement.
In October, the company announced it would focus on cutting
costs as global economic uncertainty and sagging demand is seen
stretching into next year.
"For 2013 cost savings are estimated at around 160 million
crowns," it added.
In its third report the company said that demand in its two
largest markets had continued to be challenging, with sales in
North America hit by drought and those in Europe by cautious
consumer sentiment and unfavourable weather.
($1 = 6.6978 Swedish crowns)
(Reporting by Simon Johnson, Editing by Alistair Scrutton)