BRIO to take further streamlining measures - 30 white-collar staff to be made redundant

With the aim of achieving profitability, BRIO intends to take further streamlining measures including coordinating design, product development and marketing resources. Simultaneously, 30 white-collar staff will be made redundant.

“BRIO’s in-house developed toys, prams and child safety seats for cars have shown good growth, which is positive for our margins. Unfortunately our total sales have been weaker than expected and we calculate that the downturn in the global economy will mean further challenges. Therefore we must reduce costs in our efforts to achieve profitability,” says acting CEO, Håkan Johansson.

Discussions with union representatives will start immediately and negotiations are expected to be concluded by mid-December.

The new streamlining measures and the implemented redundancies are expected to lead to savings of around SEK 40 million per year with the full effect being seen in 2010. A one-off cost of SEK 41 million is expected to be charged to the fourth quarter of 2008.

Malmö 26 November 2008

BRIO AB (publ)


For further information, please contact:
Håkan Johansson tel: +46 (0) 479 19 000