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Swedish forestry firm cuts jobs

Published tisdag 18 juni 2013 kl 18.11
Photo: Mats Åstrand/Scanpix

Seven hundred and fifty jobs are to go at Stora Enso in Sweden. The Swedish-Finnish forestry company is shedding 2,500 jobs throughout Europe as it battles weak markets and falling profits due to a dropping off in demand for newspapers.    

The job losses are part of a savings plan announced earlier this year.

Stora Enso's finance director Karl-Henrik Sundström says that there are several reasons behind the cuts.

"Firstly, the demand for fine paper and newspapers reduces approximately between 4 to 6 percent per year. The decline we have seen has accelerated recently. The second is the economic situation in Europe, our large domestic market is quite poor. Thirdly, we have increased competition from North America and Latin America, and Asia," he says to Swedish Radio News.

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