Despite a historically high order backlog FLSmidth has said in a statement that it considers it necessary to proactively reduce its workforce in order to create the necessary flexibility and be better prepared for future uncertainties in its markets. This comes announcement comes on the back of the global economic downturn which has resulted in a continuing declining level of investments in both the cement and minerals industries.
The reduction in workforce is expected to primarily affect FLSmidth’s three project centres in Valby, Denmark; Bethlehem, US; and, to a very limited extent, Chennai, India.
The aim is to reduce the number of jobs globally by approximately 600, representing about 6% of the workforce.
Statutory national negotiations will be initiated with the relevant labour market organisations.
FLSmidth expects that the downsizing of its employee base successively together with other measures will reduce the Group’s cost base with a limited positive effect on the earnings for 2009 and have full impact in 2010.