Saab Ericsson Space is to lose a further 80 personnel from its Gothenburg, Sweden, operation. The international market for telecommunications satellites remains weak, and Sweden's space budget has gradually been cut back over a number of years.

Since its formation in 1992, Saab Ericsson Space has successfully marketed products for use onboard commercial telecommunications satellites. In recent years, some 50 percent of the company's net sales have been generated in this field. However, only 5 new satellites were commissioned on the world market last year, compared to the normal 25~30. The market is expected to remain weak for the next few years, largely a result of overcapacity in the general telecom arena.

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"In a difficult situation like this, matters are not made easier by the fact that the state budget for space-related operations has continued to decrease, and there is nothing at present to indicate that appropriations are set to increase. Altogether this leads to a very distressing situation for Swedish space industry," said Bengt Mortberg, President of Saab Ericsson Space.

Personnel in construction, production and administration will be affected by today's official notice. Industrial co-determination talks will begin immediately. As with previous workforce reductions, the company is cooperating with TRR Trygghetsradet career transition support and the Public Employment Services.

Saab Ericsson Space AB's facility in Linkoping and the subsidiary Austrian Aerospace in Vienna, Austria, are not affected by these latest measures.

FMI: www.saab.se www.space.se