Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Sandvik announced 429 layoffs in its materials technology division, citing COVID-19 related economic uncertainties. The layoffs translate to a 13pc reduction from Sandvik’s 3,300 people workforce.


Eighty one percent of the total workforce reduction will take place at the Sandviken facility and the remaining 19pc at Hallstahammar, both in Sweden. The layoffs include both office and plant personnel and could take place between October and December 2020.


Goran Bjorkman, president Sandvik said in a media statement that the layoffs were a result of uncertainties in the global markets caused by COVID-19. He added that these uncertainties have resulted in weaker steel demand and need for operational efficiencies. 


Sweden-based Sandvik operates in three business areas including machining solutions, mining and rock, and materials. The materials technology segment manufactures advanced stainless steels and special alloys. 


Sandvik’s revenues by market segment stood at 37pc from mining, 21pc from engineering, 11pc from automotive, 8pc from construction, 7pc from aerospace, and 4pc from other industries last quarter. By region, the top three markets as a percentage of revenue were Europe at 37pc followed by North America at 23pc, and Asia at 19pc. Sandvik’s Q1 2020 revenue was SEK23.6bn ($2.5bn).



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