Staff Cuts at the Generic Group
January 27, 2010
Generic today notified a total of 20 employees in Nacka of their termination due to a shortage of work. The terminations affect employees at the parent company, Generic Sweden AB, and at the subsidiary, Generic Software Solutions Sweden AB.
As previously reported, the Generic Group is experiencing profitability issues in parts of its consulting business and has excessively high structural costs, primarily in the parent company. Efforts to improve efficiency have been initiated.
The Group’s parent company, Generic Sweden AB (publ), is giving notice of termination to the ten employees at its Nacka office. Going forward, the parent company plans to primarily hire outside consultants to meet its staffing needs. Furthermore, due to poor financial performance over an extended period, the company is considering winding down operations at its subsidiary Generic Software Solutions Sweden (ten employees).
The layoff notices will be filed with the Swedish Public Employment Service later today. Negotiations under the Swedish Co-determination Act (MBL) have been requested and will begin shortly.