Hexatronic Cuts 120 Jobs in $13.5M Savings Program Amid Profit Warning

Hexatronic, a fiber cable company, is implementing a significant savings program and workforce reduction to address severe financial challenges. These challenges include a sharp decline in stock price and a substantial profit collapse, as reported by Dagens industri. The initiative, spearheaded by new CEO Rikard Fröberg, aims to reduce annual operating costs by 122 million Swedish kronor. This action follows a profit warning issued by Hexatronic for the second quarter, signaling escalating financial difficulties. A central element of the savings program involves reducing the company's workforce by 120 employees. This strategic move, the first major initiative under Fröberg's tenure, is a direct response to the underperformance that prompted the profit warning. Hexatronic is undertaking these measures to effectively manage expenses and bolster its financial health. This restructuring program is presented as a crucial step to stabilize Hexatronic's operations and steer the company towards a more financially sound trajectory under its new leadership. The broad-ranging cost-cutting efforts highlight the pressing nature of the challenges currently confronting the company.