SKF AB (Sweden; Stockholm: 5251R9N7) announced more than 900 more jobs will be cut from facilities worldwide, on top of the 4,800 already announced. Of those original 4,800, approximately 3,700 have been made since third quarter 2008.

Approximately 80 were cut from the Stonehouse facility as the superprecision bearing factory moves to two facilities in Italy. A French factory, in Fontenay-le-Comte, producing small ball bearings for electric motors and appliances, will close affecting another 380 people. And jobs will continue to be cut in India and Sweden, two areas usually considered off limits to cutbacks.

Beyond the direct job losses, more than 18,000 people in SKF facilities worldwide are reportedly working short weeks, abbreviated hours, and other options worked out with various unions, governments, and with the employees themselves.

These newly announced 900 are being taken out more to address the need to adapt manufacturing output to new lower demand levels, such as the Fonentay-le-Comte closing. At one point, Fontenay-le-Comte employed well over 700 people, but the cost of bearings produced by the factory is now 20% to 40% too high to be competitive in the global marketplace. There had been some shift there to higher value-added production, but ultimately it was not enough to save the facility.

2008 article: SKF cuts deeper at Fontenay
Some of SKF's actions, particularly closing Fontenay-le-Comte, are being taken so the company can gain the needed flexibility to accelerate its already-ongoing redeployment of manufacturing resources to faster-growing regions of the world.

Tom Johnstone, SKF's President reiterated the company is experiencing unprecedented falloff in demand, paralleling what happened after World War II drew to a close.

The company has tried not to cut workers, saying, "Lose people and you lose competence."

SKF said it expects to complete all of the currently announced programs, which primarily affect automotive-related operations, by the middle of 2010.