Scania to streamline bus operations

Swedish manufacturer Scania has announced it will restructure its bus production, with its workforce to be cut by 250 employees

Scania is set to boost the efficiency of its bus manufacturing division, with the Swedish company recently announcing it will reduce its workforce by 200 in Poland and 50 in Sweden in an effort to save around SEK 70 million (approximately $A12 million) annually.

The company’s Senior Vice President and Head of Scania Buses & Coaches, Klas Dahlberg, said its bus division had to be downsized to more accurately reflect current market demand.

“We possess significant overcapacity in our city bus operations,” he said.

“We must therefore undertake extensive restructuring measures in order to match our industrial structure with our commercial conditions. This is the only way to secure our long-term position as a supplier of complete city buses.”

Scania says the restructure will affect the areas of R&D and purchasing, along with the production line itself and related administrative services.

At its peak, over 600 examples of Scania’s Citywide bus model were sold to primarily European countries, but sales have declined in the years since.

Scania has already commenced negotiations with local trade unions to negotiate the severance terms for affected staff. In Poland the 200 jobs to be axed will come from a total workforce of 500.

The 50 staff affected in Scania’s headquarters in Södertälje, Sweden, will be offered continued employment in different departments.

Scania currently employees around 41,000 people across the 100 countries in which the firm operates.

Scania to streamline bus operations

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