Scania Announces Major Downsizing In Organization Due To Covid-19 Pandemic

The ongoing Covid-19 crisis has forced the major organization to shrink their economic plans due to stiff economic conditions in the world. This is the reason that major Economies and organizations are now introducing strict measures to cope up with the economic challenge. Scania has announced that the company has decided to reduce its staff to cope up the major economic challenge posed by the Covid-19 pandemic.

Chief Executive Officer and President of Scania, Henrik Henriksson said, “The Coronovirus crisis forces us to reduce our activity level and that means we estimate we have 5,000 more staff globally than needed. This includes a review of up to 1,000 white-collar positions at our Head Office in Södertälje.”

“Our assessment is that it will take long before market demand reaches pre-crisis levels and we therefore need to adapt the organisation to the new situation already this year. These will be company-wide measures and formal notices of redundancies are not excluded. The measures also include parts of Scania that normally are not impacted by short term changes in production volume,” Henriksson further added.

Employee representative on the Board of Directors, Michael Lyngsie said, “For employees in production we already have the instruments to deal with short-term variations in demand, such as our time bank and temporary employment as well as a way of working that continuously generates gains in efficiency. Thanks to these tools, we estimate that we will be able to handle possible staff reductions through our normal processes.”

Employee representative on the Board of Directors, Lisa Lorentzon said, “As always at Scania, we will strive to minimise the effects for our employees, also in these difficult times. Among the white-collar unions, we fully advocate the continued disengagement of consultants.”

“This requires transferring needed competence and skills to Scania’s permanent staff – which is part of our local collective agreement – in order to secure the company’s long-term survival,” Lisa Lorentzon further added.

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