Gothenburg, 24 July 2025 — Swedish bearing giant AB SKF will eliminate roughly 1,700 positions worldwide, the overwhelming majority of them staff roles in Europe, as part of a SEK 2 billion cost-saving drive tied to the planned separation of its automotive division next year.
CEO Rickard Gustafson said the reductions—equivalent to about 4 % of SKF’s global workforce—are “painful but necessary” to shield profitability while demand remains soft and currency headwinds persist. After accounting for selective re-hiring linked to footprint changes, the net head-count loss is expected to be around 1,200 jobs, with savings reaching full run-rate in 2027.
Timeline and Swedish impact
- Consultations begin immediately; most affected employees will receive final notice this autumn.
- Cash costs will hit the P&L mainly in 2026.
- Sweden will not be spared, although SKF hopes to rely heavily on natural attrition and early-retirement packages to blunt the impact at home.
Quarterly snapshot
Despite the cuts, SKF reported a resilient second quarter:
- Net sales fell 9 % to SEK 23.2 billion, pressured by weaker automotive markets and FX swings.
- Adjusted operating profit eased to SEK 3.1 billion from SEK 3.3 billion a year ago, but still beat consensus of SEK 2.9 billion.
- Operating margin widened slightly to 13.3 % thanks to strict pricing discipline and cost control.
Automotive spin-off on track
Work continues toward spinning off the automotive business in H1 2026 via a tax-efficient Lex Asea distribution and separate listing on Nasdaq Stockholm. The division generated SEK 30 billion in sales last year with a 5.6 % operating margin—well below the 15 % margin posted by the Industrial unit—underscoring the strategic logic of the split.
Outlook
Management cautions that global demand remains uncertain; it sees Q3 organic sales roughly flat year-over-year and expects another SEK 500 million negative currency impact on operating profit.