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Sweden – Uniflex expects layoffs and revenue decline after contract loss

05 March 2013

Swedish staffing firm Uniflex is expecting a decline in revenue this year and staff layoffs after losing out on a lucrative contract with one of its biggest customers. The recruiter announced on Monday afternoon that major client Telenor Sweden is undergoing reorganisation processes which will have a huge impact on Uniflex.

Telenor is Sweden’s third largest mobile operator and the third largest provider of fixed broadband. The firm has used Uniflex’s staffing services for years, but now plans to fully outsource service operations to other external suppliers.  

Uniflex therefore expects revenue to drop by €19 million (SEK 160 million) year-on-year as of May 2013. For the year ending 31 December 2012, the company achieved €185.9 million (SEK 1.6 billion) in annual revenue so the loss of the Telenor contract would represent a -10% reduction. The recruiter also said there may be redundancy costs of up to € 600,000 (5 million SEK) in the second quarter of 2013.

Uniflex staff employed at Telenor's customer service site in Karlskrona will be laid off. ”It is really sad to have to lay off staff, but we will give the dismissed all the support and help we can,” said Jan Bengtsson, Uniflex CEO.

Uniflex is one of Scandinavia’s largest staffing firms. Earlier this year, the company reported falling revenues in the fourth quarter as demand for recruitment services slowed, particularly in Sweden. Net sales dropped -10% to €43.6 million (SEK 375.3 million) in the three months to December.

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