Saab Cuts Working Hours for 500 Employees by 40%

Saab today announced a reduction in working hours for 500 employees by 40% in view of reduced demand for aerostructures due to the COVID-19 Pandemic.

"Saab has today made the decision to introduce reduced working hours for 500 employees at the business unit Aerostructures within the business area Industrial Product and Services (IPS). A majority of these employees will work 60% of their regular hours. The agreement is valid from April 14," Saab said in a release.

This far, the impact of COVID-19 on Saab has been low, given the company’s large order backlog and business model with long-term commitments. Saab's business unit Aerostructures supplies products to the civil aviation industry, which has been affected considerably by the effects of COVID-19.

COVID-19 effects the business unit Aerostructures in the form of reduced demand and disruptions in the supply chain, and therefore Saab now adjusts the business to the external circumstances. The existing contracts and commitments are ensured with the revised staffing level.

"The Corona pandemic creates great uncertainty in the civil aviation industry, where both suppliers and customers temporarily close their facilities. Therefore, it is a matter of course for Saab to review the operations and ensure a quick transition to the new conditions. With this we also maintain the competence and capacity that will enable future growth", says Jessica Öberg, head of Saab's business area IPS.

In addition to this, Saab's wholly-owned technical consulting company Combitech, which is a business unit within IPS, had earlier reduced the hours of 120 people, as a result of several Swedish industries reducing their production levels.