Following a lacklustre sales period, Renewcell has said it will be pursuing an organisational restructuring of the company, with job losses expected across its workforce.
The circular fibre manufacturer has begun negotiations with Swedish trade unions regarding the scheme, which could lead to the elimination of 25 percent of its workforce, amounting to just over 30 people.
Through the reorganisation, the company is hoping to “improve efficiency while maintaining focus on sales”, which have suffered in recent months due to lack of product demand.
Through the job cuts, Renewcell said it was expecting annual savings of approximately 35 million Swedish krona (2.7 million pounds) in total per annum once finalised.
In a regulatory filing, Magnus Håkansson, acting CEO, commented: “This kind of decision is never easy to make and would not be planned for unless it was absolutely necessary for our long-term success.
“The planned restructuring of the organisation means that Renewcell will maintain conditions for efficient production while continuing to focus on the development of sales to fibre producers as well as focusing on marketing activities to the major clothing brands that determine the final demand in the supply chain.”
Read more:
* Renewcell ends 2023 on upbeat production note
* Renewcell secures SEK 100 million capital injection amid strategic review
* Renewcell reduces production as demand wanes
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