Lower global demand forces Epiroc redundancies
2 June 2020Tunnelling and infrastructure technology provider Epiroc is to make 425 of its Sweden-based employees redundant. The move comes as a response to lower global demand from mining and infrastructure companies amid the Covid-19 pandemic and to “position the company better for the future”.
The redundancies will be for 350 employees in Örebro and 75 in Fagersta, of which half are in production. Epiroc said it has faced a “significant drop in demand” from customers due to the pandemic and its effects on the global economy. But the move is also seen as a response to the firm’s global efficiency drive which has been ongoing since 2019 and as a step to prioritise innovation.
“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,” said Epiroc president and CEO Helena Hedblom. “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.”
Örebro is Epiroc’s main manufacturing and R&D hub for its underground and surface equipment, service and spare parts supply; Fagersta is home to its rock-drilling tools division. The company has a global workforce of around 14,000, of which roughly 3,100 are in Sweden.
