The Swedish speciality steel group SSAB said on Dec. 5 it will cut 1,300 jobs as part of a major cost-saving programme due to a sharp decline in demand for its products.
"As a consequence of the severe downturn in the steel market and the uncertain prospects for 2009, SSAB is undertaking a cost savings program that is estimated to reduce operating costs by at least one billion kronor (US$ 123 million) per year," the company said. "As part of the program, SSAB intends to reduce its workforce by 1,300," it said, adding that the cost-cutting measures would be implemented next year and "the full impact is expected to be felt in 2010."
The company said it would slash 1,100 jobs within the group while the remainder would come among contractors and consultants.
The cost of implementing the program was estimated at around 550 million kronor and was expected to impact SSAB's fourth quarter results this year, the company said.
Copyright Agence France-Presse, 2008
