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Swedish big companies waiting more cutbacks as their operation environments continue to be uncertainMonday, 20 February 2012
The big Swedish companies are now talking of their economies and operating environments not as rosy as one would have expected. As such their economies are failing - but so far no major cuts have had an impact on a broad front.
Standing out are the likes of Astra Zeneca, Nordea and Scania are already examining data that seem to show that their bottom line would get constricted in the next six months. Most listed companies presented a more that disappointed financial statements for 2011 to their market participants.
In three of four occasions profits expected was more of a shame which signalled marked deterioration compared to the reports just a few months earlier. And for thousands of employees there seem an extreme uncertain future for them.
In that line, a heavy setback was within AstraZeneca which presented a statement that 1,200 medical scientists will be removed at the Södertälje plant. Truck manufacturer Scania, is also setting the brakes as it will not extend the contracts of 1,900 temporary employees. The so called Scandinavian biggest bank, Nordea is cutting down it staff by an additional 1,000 employees in addition to a previous savings packages announced earlier.
For the other bank, Swedbank, it has said that it wants to save Skr1 billion. Translated into plain language, it means nearly 1,000 people will loose their jobs although they have not specified the number. Swedbank's savings ends up primarily in the consulting side – that is where it plans to cut more.
For the other Swedish based companies which are also testing the direction of the economic headwind, steel maker, SSAB is to save Skr800 million and cut 10 percent of its management employees. 200 management officials will disappear from its operations locations in Ludvika, Oxelösund and Luleå.
According to a survey carried out by the Swedish central banks, the Riksbank recently, the Swedish economy is expected to deteriorate further over the next six months. The weaker trend has already left their mark on the companies' price plans and fewer companies believe they can raise prices during the year.
The companies believe they will need to cut back further on their number of employees in the future, according to the Swedish Central Bank report.
By Scancomark.se Team
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