EMCC European Monitoring Centre on Change

Scania

Company/Organisation:
Scania

Geographic Location

Country: World
Location of affected unit(s): Sweden + Netherlands, France, Brazil and Thailand.

Company

Sector: Manufacturing
Manufacture of transport equipment
29.10 - Manufacture of motor vehicles
Number Employed: 50000

Employment Effects

Announcement Date: 01-06-2020
Planned Job Reductions min: 5000
Planned Job Reductions max: 5000
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-10-2020

Additional Information

The Swedish truck maker Scania has announced it will cut 5,000 positions world-wide from a total workforce of about 50,000. Of the 5,000 job cuts, 1,000 are planed at its headquarters at Södertälje (Sweden).  The job cuts are related to the economic impact of the coronavirus. Scania faces a 41% drop in vehicle deliveries in the first half of 2020. The group has production facilities in the Netherlands, France, Brazil and Thailand. Scania's CEO Henrik Henriksson said in a statement that 'It will take a long time before demand returns to pre-crisis levels'. During the peak of the lockdowns in Europe, Scania said it completely stopped production due to shortages of components and disruptions in its supply chain. The  group 'will strive to minimise the effects for our employees', according the employee representative on the Board of Directors. The restructuring will also involve the elimination of consultants. The aim is to transfer needed competence and skills to Scania’s permanent staff - which is part of a local collective agreement - 'in order to secure the company’s long-term survival'.The excess staff is mainly in the global sales, the service organisation, as well as the Head Office including research and development.

 

Sources: