Saab automobile to sack 500 workers in its reconstruction bid as top managers leave the company for next door rivalMonday, 31 October 2011
The purchase plan for Saab has been made clearer today and one of the most gruelling aspects is that there would be about 500 jobs to be lost.
The Purchase Plan at Skr1 billion included in the reconstruction of the company will see 500 employees to leave the company, according to a press release from the holding company Swedish Automobile and according to reports affected employees were informed on Monday morning.
"The company's strained situation and the long period of downtime have led to the company management to sees a need to reduce the workforce and thus adapt the organization to prevailing conditions. Against this background, Saab has given notice to the Swedish Employment Service, as well as the unions. They have a surplus of 500 people and are now starting negotiations with the unions, "writes the Saab to the employees.
AdvertisementThe Chinese companies are willing to contribute money to an arrangement with creditors which can be reached in 2012, according Guy Lofalk who is running the re-organisation.
At ten o'clock there were many people in the municipal building's entrance while waiting for the creditors meeting to begin.
When the doors opened there were only a few representatives from Youngman and Pang Da in attendance. Saab's CEO, Victor Muller, declined to comment along with several of Saab's management.
Guy Lofalk did muck of the talking and explained about Pang Das and Young's long-term interests and the so called bridge financing which came in earlier in the re-organisation. That was some EUR 50 million which hopefully Saab could begin to benefit from already this week, according Lofalk.
Saab's product portfolio will include old existing models 9-5 and 9-3 in various designs, according to reorganization plan. New markets are supposed to be the part of the deal as previously announced with the 9-5 Sport Combi and 9-4X to come in.
Concerning those given notices, it related more those working n the main production areas as it relates to a planned rate reductions when production resumes.
There is a need of layoffs even at to higher management according to Saab, but there has been a relatively high turnover of late in that area so it makes sense to not layoff there as yet.
Already, engineers and strategist of Saab have been moving in their drove to Volvo cars which also had an apatite to recruit skilled staff. For example, Saab Automobile's production director Gunnar Brunius in reported to leave the company, and to begin work at Volvo Aero.
According to Swedish television channel, TV4, Gunnar Brunius has taken a heavy load over the Saab's crisis, but now chooses to leave Trollhättan to Göteborg.
"The reason is that I got the offer to work at Volvo Aero. This is a new industry for me and I see it as an exciting new challenge, "says Gunnar Brunius to the television station.
By Scancomark.se Team
Unfortunately the original re-organisation report is in Swedish but if you can read Swedish here is the report detailing the intension of he company for the future
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