Beijer Electronics takes preventive measures – downsizes workforce

At the same time the company emphasizes that year to date, the group has not noted any significant drop in demand. The supply chain disruptions that occurred due to China’s actions against the spread of the virus in the early months of the year have gradually improved. In a press release the group says it has decided to execute a program of measures that involves downsizing staff by about 40 people in the Korenix and Beijer Electronics business entities. Most of these lay-offs are in Taiwan, with some in Sweden. The expenses for the program are SEK 15 million (EUR 1.36 million), which will be charged to earnings for the first quarter 2020. Estimated savings are SEK 25 – 30 million (EUR 2.26 – 2.72 million) in 2020, and then SEK 40-45 million (EUR 3.63 – 4.08 million) annualized. “Over the past four years, we have realigned the Group. This process involved a skills succession and created a sharper organization, as well as significant investments in product development and rationalization end to end in our supply chain. This means our organization is well prepared to address a harsher business climate. Once this crisis is over, we will still be attractive to employees and customers,” says Per Samuelsson, CEO and President of Beijer Group in the press release.