Reduced costs by SEK 200 million when Serneke streamlines the organization
Serneke takes the next step in a large reorganization that the company initiated in the fall of 2019. The changes now being implemented leads to reduced costs of about SEK 200 million annually. Expected to be in full effect at the beginning of 2021 and to impact up to 100 positions.
"The measures we are now implementing lead to an adjustment of the cost base for the new Serneke Sweden and its more efficient working methods. In addition, the current situation in the world with the effects of covid-19 requires additional acuity and decisiveness", says Ola Serneke, acting CEO of Serneke Sweden and CEO of Serneke Group.
The creation of a new organization began in the fall of last year and aimed to bring together the company's core business into one Serneke Sweden consisting of five regions, all with full profit and loss responsibility. Closeness to the local business and more engaged employees were some of the strengths that the new regional structure shall further improve. Serneke also moved away from the four business areas Construction, Civil Engineering, Project Development and Real Estate. Now, in the new organization, focus is on satisfying customer needs and delivering a full-service offering with the company's combined competences.
"After a few months with the new organization we are becoming more efficient and better at utilizing resources. Strengthened by that, and as a natural next step, we are now taking actions to further sharpen our competitiveness and improve our profitability", says Ola Serneke.
The initiatives reduce costs throughout the organization and mean that up to 100 employees are notified of termination. This is primarily impacting business units where the reorganization has had greatest impact, such as within the previous business areas Civil Engineering, Real Estate and Project Development. Discussions with the trade unions have started.
In total, the efficiency measures mean that about SEK 200 million in costs are reduced annually, with full impact from the beginning of 2021. Reservations of about SEK 100 million for costs linked to the implementation will impact earnings in the first and second quarters of 2020.
"The change we are now presenting is necessary to follow our ambition of profitability ahead of growth and secure our future competitiveness. It is an important part of a long-term plan that is further impacted by the serious situation prevailing globally due to covid-19. This will be a year of focus on our contracting operations and on execution of our record strong order book of SEK 9 billion with which we started the year", says Ola Serneke.
Serneke to construct 206 apartments in Orminge
Serneke and Magnolia Bostad have signed an agreement to construct 206 apartments and an assisted liv...;
Serneke signs land allocation agreement with the municipality of Växjö
Serneke has won a land allocation competition for the Dörren 4 property in the Vikaholm area of Växj...;
Serneke signs letter of intent regarding on development of Motala's urban area
Serneke has signed a letter of intent with the municipality of Motala and municipal company AB Wette...;
Serneke to construct 89 apartments in Habo
Serneke has signed a construction contract with Tosito for the construction of the Vätterbyn housing...;
Serneke to construct PSAP and control center in Örebro
Serneke has signed a contract agreement to construct a new Public Safety Answering Point (PSAP) and ...;
Serneke develops secure housing for Landskronahem
Following a procurement procedure, Landskronahem has entrusted Serneke with developing and construct...;
Serneke presents new business plan and announces Capital Markets Day
Serneke has set out a new business plan extending until 2025 and has adopted new long-term financial...
Interim report January-June 2020
HISTORICALLY STRONG ORDER BACKLOG
Serneke received consent from the bondholders in the written procedure to amend the terms and conditions and extend the maturity of its senior unsecured bonds 2018/2021
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES (...