Saab has raised the spectre of redundancies following its entry into bankruptcy protection today.
The Swedish automaker has escaped the immediate prospect of bankruptcy after the Gothenburg Court of Appeal allowed it to enter voluntary reorganisation, but news of potential job losses will come as a blow to the workforce.
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There are almost 4,000 employees at Saab’s Trollhättan factory, but the prolonged stoppage may now see the axe being taken to that headcount as the manufacturer strives to secure efficiencies.
A statement from Saab notes: “During the coming weeks, Saab Automobile will identify areas throughout the whole organisation where efficiencies can be gained. The initiative will focus on both fixed and variable costs and aims to create a lower and more flexible cost structure within Saab Automobile by eliminating duplication of work, streamlining processes, shortening lead times, improving coordination between departments and simplifying the organisational structure.
“As a result of this initiative, headcount reductions cannot be ruled out. All improvements should be implemented before year-end in order for Saab Automobile to have a new, competitive cost structure for the 2012 financial year.”
Union reaction to potential job cuts is not yet clear, despite a welcome earlier from Saab’s two main blue and white-collar labour bodies, IF Metall and Unionen, concerning the Gothenburg Court’s decision.
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By GlobalDataSaab was not immediately available for comment.
