Saab Serves Notice of 300 Employees in Linköping

STOCKHOLM, Sweden--Regulatory News:

As a result of low production volumes within the commercial aircraft production, Saab (STO:SAABB) is serving notices of lay-offs of 300 employees within Saab AB in Linköping. Both office workers and factory employees are affected.

The reason for the notice is primarily due to customer delays within major programmes at Saab Aerostructures. This has led to considerably lower production volumes than planned, resulting in a substantial decrease in revenues. The notice affects aviation related operations in Linköping.

The Swedish Public Employment Service has been informed about the notice. Negotiations with the trade unions have begun.

“Continually adapting our business to new situations is essential if we are to be a cost effective and competitive company. It is regrettable that we now have to lose good employees, but unfortunately this cannot be avoided. Together with the trade union organisations within Saab, we will implement these changes carefully,” says Saab's CEO Åke Svensson.

The structural costs are calculated at approximately SEK 100 million, the majority of which will be recorded in the fourth quarter of 2009.

Saab is conducting a review across of all its operations and further reductions cannot be excluded, either in Linköping or elsewhere. Saab today employs approximately 13,300 people around the world.

Saab serves the global market with world-leading products, services and solutions ranging from military defence to civil security. Saab has operations and employees on all continents and constantly develops, adopts and improves new technology to meet customers’ changing needs.