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."
For further information contact: CEO Gerteric Lindquist or CFO Hans Backman: +46 (0)433 27 30 00
This information in this press release is information that NIBE Industrier AB (publ) is obligated to make public pursuant to Nasdaq Stockholm's Rulebook for Issuers of Shares. This information was submitted by the above contact persons for release on March 18, 2024 at10:055 CET.
NIBE Group - an international Group with companies and a presence worldwide
The NIBE Group is an international Group that contributes to a reduced carbon footprint and better utilization of energy. In our three business areas - Climate Solutions, Element and Stoves - we develop, manufacture and market a wide range of eco-friendly, energy-efficient solutions for indoor climate comfort in all types of properties, plus components and solutions for intelligent heating and control in industry and infrastructure.
Since its beginnings in the town of Markaryd in the province of Småland 70 years ago, NIBE has grown into an international company with an average of
23100 (21300) employees and a global presence. From the very start, the company has been driven by a strong culture of entrepreneurship and a passion for responsible business operation. Its success factors are long-term investments in sustainable product development and strategic acquisitions. Combined, these factors have brought about strong, targeted growth, which generated sales of just under SEK 47 (40) billion in 2023.
NIBE has been listed under the name NIBE Industrier AB on the Nasdaq Nordic Large Cap list since 1997, with a secondary listing on the SIX Swiss Exchange since 2011.
