In a significant move to enhance competitiveness and operational efficiency, SKF, a leading global industrial company, has announced a net reduction of approximately 1,200 staff positions, primarily in Europe. This follows the previously announced rightsizing of its Industrial business, which has been made possible by the separation of its Automotive division.
The gross reduction comprises about 1,700 roles, though this figure is partially offset by re-hires linked to ongoing strategic footprint shifts, bringing the net job cut to 1,200. While these decisions are difficult, they are necessary to secure long-term competitiveness in a fast-changing market,” SKF stated in a company release.
As part of the restructuring, the company expects to generate annual savings of around BSEK 2 by 2027. These savings will more than compensate for dissynergies resulting from the Automotive separation. The restructuring will also involve a reduction in consultants and other cost-saving measures. Restructuring costs have been fully accounted for in the current quarter as Items Affecting Comparability (IAC), totaling BSEK 2. The cash flow impact is primarily expected in 2026.
The announcement is part of a broader transformation plan focused on strengthening operational and commercial excellence across targeted markets. In particular, the aerospace business has shown strong performance, with a 12% annual sales growth and an 8 percentage point increase in adjusted operating margin since 2022, positioning it well for long-term profitable growth.
Looking ahead, the company expects organic sales to remain relatively flat in Q3 2025 compared to the same period last year, citing uncertainty in the global economic outlook. Currency fluctuations are projected to have a negative impact of around MSEK 500 on operating profit in Q3 2025. Full-year guidance includes a tax level of approximately 26%, excluding effects from divested businesses, and capital expenditure of BSEK 4.5, excluding the Automotive separation. Further details on the organisational review and manning of the Automotive business are expected to be shared during the company’s Capital Markets Day on November 11.