Epiroc has provided a notice of termination to 425 employees in Sweden as it looks to adapt to the changing COVID-19 demand situation in the mining and infrastructure sectors.
The move is in response to lower global demand from these sectors amid the pandemic, and to position the company better for the future, it said.
Some 350 positions are expected to go at the company’s Örebro facilities, with 75 positions being removed in Fagersta, Sweden, of which half are positions in production, the company said.
Örebro is a main manufacturing and research and development hub for Epiroc’s underground and surface equipment as well as for service and spare parts supply, while Fagersta is home to Epiroc’s rock drilling tools business. Epiroc has about 3,100 employees in Sweden, out of a global workforce of some 14,000.
Epiroc said: “The action is the result of Epiroc facing a significant drop in demand from customers due to the COVID-19 pandemic’s effects on the global economy. The work reductions are also part of Epiroc’s continuous effort to become as agile and efficient as possible and follows various efficiency measures taken worldwide since 2019.”
Helena Hedblom, Epiroc’s President and CEO, said: “We are taking these actions to adapt to the new market situation following the COVID-19 pandemic and to make us stronger and more resilient for the future. Unfortunately, we must take such a drastic action as giving notice of termination. We regret the negative consequences this will have for our colleagues and those close to them, and we will support our employees in this difficult situation.
“These actions will allow us to continue to prioritise innovation and to develop our technology leadership in order to support our customers’ operations and improve their productivity.”
Epiroc’s innovation investments have led to the mining and infrastructure industries becoming more productive, safe and climate friendly, according to the company, following the adoption of its automation, digitalisation and electrification solutions.