Skanska Adapts to the Current Market in Poland
Recent developments in the Polish construction market where Skanska is active has resulted in the notification of employees of redundancies within Skanska S.A. We have informed the union that a total of 1,150 employees in Poland could be affected in collective redundancies. The decision will not affect our Commercial Property or Residential Development units in Poland.
“Poland is still a good and important market, but we are experiencing a shift in the market to larger projects and must adapt accordingly. Currently, we have too big costs relative to our revenues”, says Johan Karlström, CEO, Skanska.
As highlighted in the half year report issued on July 22nd, Skanska’s construction stream in Poland was negatively impacted by weak performance in certain projects. A shift was also seen in the market from small and medium sized projects to large projects, due to delays in the allocation of designated EU funds, calling for adjustments in structure.
“We plan a restructuring process and internal changes across the following months. We also need to improve operational efficiency, to increase our competitiveness in the market. Skanska will still be the largest construction company in Poland after the rightsizing”, says Johan Karlström.
Concerning the outlook for our development streams, the demand for office space is still strong in Poland and the residential market is improving.