After the court granted temporary protection to Saab from its creditors, it is now seeking to cut costs for its survival and one way it intends to achieve this is by reducing its employee headcount. Saab CEO Victor Muller said, "This is a battle won, but not the war.” Muller said that with this court decision, it means that employees will get paid by the weekend.
Saab is scheduled to meet with creditors as part of the reconstruction process on October 31. According to a Saab spokesman, it has yet to be determined just how many jobs will be cut or how much savings the company is aiming to achieve.
Saab will concentrate on streamlining activities, reducing lead times and making the organizational structure simpler, according to Autonews. In a statement, Saab said that the improvements have to be done before the year ends so that it could implement a new, competitive cost structure for the 2012 financial year.
Hakan Skott, IF Metall union chapter head at Saab, said he hasn’t heard about this plan yet. He thinks that the administrator would have to assess the organization and make it “as efficient as possible.”
Saab is hoping that protection from creditors will enable it to continue until China's authorities give their approval to a 245 million euro ($336 million) investment by car firms Zhejiang Youngman Lotus Automobile and Pangda.
He is hoping that the approval will come in November. Martin Crum, an analyst at Amsterdams Effectenkantoor BV, said that Saab's chances have “drastically” increased since it now has time to reorganize and get potential funding from China. He said that it’s “essential” that they find a way to handle the suppliers since there’s “still huge uncertainty."