Semcon to reduce headcount by 300 in Göteborg

Semcon to reduce headcount by 300 in Göteborg

Volvo Cars has decided not to extend assignments for slightly over 200
consultants from Semcon. This new information coupled with the previous decision
received by Semcon on 8 October, that just over 100 consultants were being
released, means that the chances of finding new assignments in the region are
small. The company has therefore decided to reduce the headcount in Göteborg by
300 people.

“We are now seeing the effects of the serious economic situation Volvo Cars
finds itself in, which means that it is now also reducing its investments in
development. We're acting to adapt our business to the declining demand in the
Göteborg region in the automotive sector,” says Kjell Nilsson, CEO of Semcon AB.

MBL (Codetermination Act) negotiations with the union organizations will start
shortly. Our ambition is to make this process as short as possible and we are
working in tandem to try and find new assignments with new and current customers
in the manufacturing, offshore, medtech, pharmaceutical and energy sectors.

Semcon had nearly 40% of its business outside Sweden at the end of the third
quarter. Something that will increase and where there are possibilities to offer
Swedish engineers front-office and back-office positions aimed at finding new
assignments in the Göteborg region. Demand in the automotive sector from a
global perspective is good and Semcon has signed several new deals over the past
month. 

The effect of the new assignments that will not be extended during the year and
the settlement costs will burden results for Q4 by around SEK 40 million before
tax. The reduced order volume from Volvo Cars in total corresponds to sales of
around SEK 250 million on an annual basis. 



This information is such that Semcon AB must publish according to laws governing
the securities market and/or laws governing trading in financial instruments.
This information was published at 9.00 a.m. on 4 November 2008. 

For more information please contact: 
Kjell Nilsson, CEO, Semcon AB, +46 (0)702 60 01 21 
Björn Strömberg, CFO, Semcon AB +46 (0)708 35 44 80
Anders Atterling, IR Manager, Semcon AB, +46 (0)704 47 28 19 

Semcon is a global engineering services company with sites at 40 locations on
three continents. The Group works with product development and information
solutions and is organized into three business areas: Automotive R&D, Design &
Development and Informatic. The Group has around 3,600 employees and had annual
sales of SEK 3.3 billion pro forma in 2007. Semcon's shares are listed on the
OMX Nordic Exchange Stockholm under the SEMC ticker.