“It’s hitting us really hard,” said Roland Gustbée, chairman of the local authority association in Kronoberg.
“Of course it’s something we’ll get over but I don’t think it will so easy this time, compared to the last downturn. This one is really tough.”
Up to 500 jobs are expected to go, with staff cuts at a local paper mill and several companies relocating.
The last time Sweden saw a major wave of redundancies was in 2008 to 2009 in the wake of the global financial crises.
Many of those who lost jobs then were able to find new jobs, but in Kronoberg county unemployment rose sharply and remained high.