The Swedish company Södra Timber, producer and supplier of sawn timber products, has announced that it is to cut 260 jobs.

Södra Timber, that currently has approximately 1,000 employees, produces sawn timber at eight mills in the southern Sweden. The downsizing measure affects employees, both blue collar-workers and white collar-workers, at the mills located in Mönsterås, Långasjö, Orrefors and Torsås.

The decision, aimed at reducing the general costs, is expected to improve the company's competitiveness in the international market.

Södra Timber is a part of the forestry cooperative Södra Skogsägarna, which is owned by 51,000 forest owners in southern Sweden. Södra Skogsägarna has about 3,800 employees.

As of September 2012 it is not yet known when the job losses will be implemented by. Negotiations with the unions have begun.