Husqvarna plans further cost reduction measures

The Husqvarna Group is launching further cost-cutting and profitability initiatives in response to difficult market conditions and constrained consumer spending. This was announced today by Gardena's parent company in addition to its quarterly report. These measures are expected to result in fixed cost savings of SEK 500 mio (approximately EUR 43 mio) per year and will affect approximately 400 jobs across the Group.

The new measures are in addition to the ongoing cost-cutting programmes that have already been initiated in 2022 and 2023. The Group justifies the savings in order to enable higher investments in its strategic value-added areas: Robotic mowers, battery products, irrigation and professional solutions.

"To meet the challenges of the market, we are reducing fixed costs and continuing to invest in our long-term strategy to strengthen Husqvarna Group's competitiveness. With a more efficient organisation and a strong product pipeline for the coming season, these measures will help future-proof Husqvarna Group's business," says Pavel Hajman, CEO of Husqvarna Group.

The company estimates the one-off costs associated with the new measures at SEK 600 mio (approximately EUR 52 mio), which will be recognised in the fourth quarter. The majority of the cost savings from the new measures will be realised in 2025, according to Husqvarna. The Group is also endeavouring to identify and implement additional efficiency measures to further improve its operational structure and effectiveness.

All organisational changes are subject to ongoing negotiations with the unions.