The start of 2024 has confirmed much weaker demand in the European heat pump market. To properly deal with this situation in a responsible manner, on February 16th this year we announced that we would be introducing a plan in response that would be aimed at reducing staff and overhead costs, particularly within NIBE Climate Solutions in Europe.
We are now entering into negotiations to implement these measures in order to align costs and staffing with the current lower sales volumes, we are also looking to establish the best possible foundations for a well-dimensioned and streamlined organization when the market turns around. After the plan has been implemented, the Group’s staffing in Sweden will be reduced by approx. 340 employees, of which approx. 264 from NIBE AB and 40 from CTC AB. In the rest of European operations, negotiations will be initiated for staffing reductions of a similar extent.
“We have long been convinced of the future growth potential to be found in the transition to a fossil-free society and reduced carbon dioxide emissions, and we are particularly well positioned in this market,” comments Gerteric Lindquist, Chief Executive Officer and Managing Director of NIBE. “This certainly is of course an extremely difficult decision to downsize and terminate the employment of loyal employees. But it has become necessary due to the tough market conditions. And we are committed to navigating the downturn in the best possible way, so that we will be in an appropriately strong position once the market picks up again.”