March 30, 2020
Swedish kitchen maker Nobia has announced that it is to temporarily lay off 3,000 staff – 2,300 of those at its UK Magnet store network.
The official statement, the directors of Nobia have initiated a raft of measures in the wake of the coronavirus pandemic.
Nobia said: “The decisions have been made in light of current market instability and uncertainties regarding economic impacts of the coronavirus (Covid-19), which is negatively impacting Nobia’s business due to, among other impacts, lower demand of kitchens.”
The company added: “Nobia has initiated temporary layoffs of approximately 3,000 employees, of which around 2,300 refer to the UK, where the kitchen store network and supply chain is closed on a temporary basis following UK regulations and recommendations.”
To comply with UK government guidelines, Nobia has closed its network of Magnet and Magnet Trade stores in the UK. That amounts to around 170 Magnet stores and nearly 160 Magnet Trade outlets.
Nobia said in its statement: “The closure is with immediate effect and until further notice. The situation is continuously reviewed, and updates will be provided if conditions change.”
On the subject of the layoffs, the Nobia statement added: “The other layoffs impact operations across different parts of the Group where all countries are affected. The majority of the layoffs will be backed by state subsidies.”
In addition to the store closures, Nobia said it had also decided to withdraw a previously announced dividend of SKr4 per share (32p), amounting to around SKr675m (£54.7m).
Nobia also said that there will not be any proposed increases of board remuneration.
The company is also cutting salaries by 20% but added that financial targets regarding its debt/equity ratio and dividend policy remain stable.
Nobia also stated that the group remains stable financially with unused credit facilities of SKr1.3 billion.
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