Metalcutting tool maker Sandvik AB is cutting production in response to lower demand, Bloomberg Businessweek reported Thursday. The reductions will apply to the materials technology, construction and machining solutions divisions.
“The biggest difference in the market is the change in the mining industry from strong growth to a more tentative stance,” CEO Olof Faxander told Bloomberg Businessweek. “Exactly how we lower production in the fourth quarter will depend on how the market develops.” Faxander added that Sandvik will look to other areas for cuts, including eliminating temporary jobs.
Bloomberg Businessweek noted that Faxander, who joined Sandvik in February 2011 from Swedish steelmaker SSAB, began last year a review of the organization with a focus on boosting profitability.
Sandvik experienced an employment decline of 1.6 percent for this year ending in September despite acquisitions, including Seco Tools AB. Most cuts took place in Sweden, and Faxander specified that hiring has occurred in growth markets.