Defense company Saab Bofors cuts staff as the Swedish government change direction regarding military materiel spending.

Saab Bofors, specializes in military materiel such as missile systems and anti-tank systems, announced on Tuesday that 370 employees are to loose their jobs. In a statement, the company explains that the Swedish government’s changed direction regarding materiel spending means that Saab does not presently see any new major development projects from the Swedish Armed Forces.

"This restructuring is necessary in order to adapt the business to the changing market situation in the long-term. We will now carefully be implementing the reorganisation and the redundancies together with the union organisations, with regard to both individual employees and the business," says Saab CEO Åke Svensson.

The company’s heritage goes back to Bofors, founded in 1873. Saab purchased the company 1999. In 2000 United Defense Industries acquired Bofors Weapon Systems while Saab retained the missile interests.

Approximately 1,300 people work within Saab Bofors Dynamics at present. Operations in Karlskoga, Eskilstuna, Linköping and Göteborg are affected.

The total structural costs are estimated at approximately 200 million kronor (€19 million) and include both the costs of staff reductions and other costs incurred in connection with the reorganization, the company said.