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Saab Ericsson Space to implement cutbacks in Gothenburg

Saab Ericsson Space to implement cutbacks in Gothenburg Saab Ericsson Space is giving notice to 60 employees at its Gothenburg plant. The measures being taken now are the result of a decreasing international telecommunications market and a shrinking Swedish space budget. Saab Ericsson Space has operations in Gothenburg, Linköping and Austria, employing a total of 680 personnel. There are 490 employees in Gothenburg and the notice applies especially to those involved in international telecommunications projects and state-financed space projects in all service categories and product areas. "Significantly fewer telecommunications satellites were procured in 2001 than in previous years. This trend seems to be holding in 2002 and we believe there will be a recovery at the earliest by next year. Since an increasing part of our activity has been focused on telecommunications satellites, this has a direct effect on the company. At the same time there has been a reduction in Sweden's participation in areas of the European space project that are relevant for us. The measures that we are now taking are a necessary adaptation to prevailing market conditions and they are essential in order for the company to continue to be competitive and profitable in the long term," says Bengt Mörtberg, CEO for Saab Ericsson Space. Negotiations are ongoing at the moment with trade union representatives as to which employees will be affected by the notice and information will be provided as soon as the negotiations are complete. The company has initiated a dialogue with a Swedish Private Employment Service for Affiliated Companies and Employees and the Swedish Public Employment Service in order to help those issued to find new jobs. Austrian Aerospace, a wholly owned subsidiary of Saab Ericsson Space located in Vienna, Austria, is not affected by the cutbacks. Saab Ericsson Space is an international and independent supplier of space equipment. The company's main products are computers, microwave electronics and antennas, guidance and separation systems and also thermal insulation material for use onboard satellites and launch vehicles. The main office is located in Gothenburg and there is also a division in Linköping. The company has subsidiaries in Austria (Austrian Aerospace) and in the USA (Saab Ericsson Space Inc.) Saab Ericsson Space employs 680 people. Saab Ericsson Space is under the joint ownership of Saab and Ericsson. For further information, please contact: Iréne Svensson, Communications Director Phone : +46 31 735 44 63, +46 705 35 08 18 Fax: +46 31 735 45 00 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/04/23/20020423BIT00250/wkr0001.doc http://www.waymaker.net/bitonline/2002/04/23/20020423BIT00250/wkr0002.pdf