Husqvarna AB said Tuesday it will close a factory in Sweden and cut 84 jobs, the latest move by its new chief executive to streamline operations and improve profitability.
The outdoor power equipment maker will decommission its plant in Brastad, which makes components for petrol-powered engines, by the first half of 2027 and outsource the manufacturing.
The company expects the closure to result in annual savings of around 100 million Swedish kronor from 2027, for a one-time cost of about 140 million kronor.
The decision comes as CEO Glen Instone, who took the helm in August, prepares to unveil a new corporate strategy in December.
“This decision is of strategic importance to drive profitable growth through increased cost efficiency and improved flexibility,” Mr. Instone said in a statement.
The move reflects a broader shift for the company, which recently reported strong growth in its professional and robotic mower segments while noting subdued demand for some petrol-powered products.
Last week, Husqvarna announced a new line of robotic lawnmowers featuring artificial intelligence, signaling a strategic focus on higher-tech products.
The Brastad closure is the latest in a series of restructuring efforts the company has made over the past 15 years to consolidate its manufacturing footprint.
More from this issuer
Related coverage
Husqvarna AB on Tuesday reported a rise in third-quarter operating profit and announced the closure of a Swedish factory, a move its new chief executive said accelerates a transition to a more "asset-light" business model.
Swedish power-tool maker Husqvarna AB said it has appointed Glen Instone as its new chief executive, replacing Pavel Hajman ahead of a planned strategy update.
Swedish power-tool maker Husqvarna AB said Thursday it has appointed Glen Instone as its new chief executive, replacing Pavel Hajman ahead of a planned strategy update later this year.