STOCKHOLM (AP) -- Swedish outdoor appliance maker Husqvarna AB on Friday said it plans to cut 400 jobs, mostly in Sweden and the U.S., by closing down some of its plants and offices and relocating several production units to Poland and China.
The news was announced in conjunction with the company's third-quarter earnings results, in which it reported an 8 percent drop in net profit to 132 million kronor ($20 million).
In all, 1,200 employees will be affected, although that figure also includes job transfers and new hires, Husqvarna spokeswoman Asa Stenqvist said.
Though specific numbers were not given for the U.S., the group said it would relocate its production of chainsaws and handheld products from DeQueen, Ar. to Nashville in the same state and transfer its office in Augusta, Ga. to Charlotte, N.C.
The changes -- aimed at consolidating operations, cutting costs and avoiding duplicated production -- will start this year and continue in 2010.
The measures are expected to cost around 400 million kronor, and annual savings are estimated to reach around 400 million kronor with full effect as of 2012.