SSAB job cuts in US minimal as it lays off 1,300 workers globally

Dec 08, 2008 | 10:58 AM | Scott Robertson

Swedish steelmaker Svenskt Stal AB (SSAB) will reduce its global work force by about 14 percent, but the cost-savings program will have only a minimal impact on its U.S. operations.

Stockholm-based SSAB said Monday it would undertake a program aimed at reducing its costs by about 1 billion kronor ($124.1 million) per year. The program includes work force reductions of about 1,300 company-wide, but only about 140 contractors at its North American operations will be affected.

David Britten, president of SSAB North America Inc., Lisle, Ill., said no salaried or hourly work force reductions are planned for North America "at this time," although production at its electric furnace operations in North America is being adjusted to meet customer orders.

SSAB is making the cuts in response to the global economic crisis, which has seen steel orders evaporate around the world. The savings program will be implemented in 2009 and the full impact is expected to be felt the following year. The cost of the savings program is estimated at 550 million kronor ($68.2 million) and is expected primarily to impact the company's fourth-quarter financial results.....