Swedish equipment and tool manufacturer Sandvik Mining (STO:SAND) is letting go 210 white-collar employees at its Materials Technology unit (SMT), located in Sandviken, about 190 km north of Stockholm.
The decision comes as tougher competition from Asian suppliers, pressure on prices and a sustained weakness in the oil an gas sector have all hit the business, the engineering group said in a statement quoted by the Swedish public broadcaster SVT.
The Stockholm-based firm noted the measure is part of a broader plan to restore profitability at the division, which saw adjusted operating profit fell by 37% in the second quarter of this year compared to the same period in 2016, as pointed in a July 17 press release.
Chief executive of Sandvik Materials Technology, Petra Einarsson, said the move is key for the long-term success of the company, though it won’t lead to any one-off costs for the Sandvik group.
Shares in the firm fell on the news, trading 0.24% lower at 126.40 Swedish Krona close to the end of the day (3:26PM local time). The stock, however, has risen more than 12% so far this year.
