ST Aerospace has announced that it has embarked on a restructuring program involving the Scandinavian operations of its wholly owned subsidiary, ST Aerospace Solutions (Europe) A/S. This restructuring is necessary, the company says, given the continued challenging aviation landscape in Europe, marked by weak domestic travel and cargo demand in the region.
Given these market conditions, ST Aerospace says it needs to take steps to manage its cost structure and work processes in order to maintain its position in the European market.
ST Aerospace Solutions will streamline the utilization and workflow of its three facilities in Copenhagen, Denmark; Oslo, Norway as well as Stockholm, Sweden. As part of this restructuring exercise, approximately 300 employees across functions could be affected. The exercise will commence immediately, and is expected to be completed by the third quarter of 2013.
ST Aerospace Solutions is actively working to help its employees through this transition and says it is “an organization that values its employees.” Among these actions are dialogues with employees, counseling sessions, and job placement programs to retrain and equip employees with new skills. It is working closely with trade unions and employee representatives to offer outplacement programs to affected employees. The company says it will be fully compliant with relevant Scandinavian labor laws and practices.