Assa Abloy To Shut Down 15 Units, Lay-Off 1,800 Workers
Lock maker Assa Abloy AB (ASSA-B.SK) Thursday became the latest
Swedish company to make a swathe of job cuts in response to the
economic downturn, announcing a new sweeping 1.18 billion Swedish
kronor ($141.8 million) restructuring program that includes
shutting down 15 productions units and laying off 1,800
Assa Abloy's move follows over 14,000 layoffs at truck maker
Volvo AB (VOLV-B.SK), 1,200 layoffs at telecoms company TeliaSonera
AB (TLSN.SK), 1,000 at engineer Alfa Laval AB (ALFA.SK), 3,000 at
consumer goods maker Electrolux AB (ELUX-B.SK), and 1,000 at auto
parts maker Autoliv Inc. (ALV), among others.
Assa Abloy said it will consolidate administrative support
functions and move to final assembly work in the remaining 25 units
in high-cost countries.
The restructuring plan is on top of measures already announced
and involves an extra 600 job cuts than previously announced. The
cost has risen from a previous estimate of SEK800 million. The
company already booked SEK247 million booked against earnings in
the third quarter.
The company expects the remaining restructuring charges to be
booked in 2008 with a payback time of two to three years. It said
all its divisions will be affected.
Additionally, the company said its fourth-quarter earnings will
be hit by SEK80 million in one-time charges relating to the
provision of supplementary lock protection in its Swedish
The restructuring measures follow an expansion of the group's
2008 production structure review in high-cost countries.
Company Web site: http://www.assaabloy.com
-By Anna Molin; Dow Jones Newswires; +46 8 545 130 91;
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