In a response to the continued challenges faced in the housing market, Boklok, the Swedish home construction company jointly owned by Skanska and IKEA, has announced a round of layoffs. According to a report by Dagens Vimmerby, the Swedish newspaper, Boklok is forced to implement a new wave of layoffs affecting 50 employees at its factory.
Boklok, established in 1996, has gained a reputation for its commitment to providing affordable and functional housing solutions. Combining the expertise of Skanska in construction and project management with IKEA's knowledge of functional design and cost-efficient production, Boklok has successfully developed sustainable, energy-efficient homes tailored to meet the needs of moderate-income individuals and families.
However, the challenging housing market has posed difficulties for the company. Earlier this spring, Boklok had already issued a notice for a total of 65 employees at its factory in Gullringen, who were subsequently let go after negotiations. Unfortunately, the continued weakness in the housing market has led to the recent announcement of an additional 50 layoffs, affecting both blue-collar workers and white-collar employees in Gullringen.
Boklok's CEO, Lars Jonson, acknowledged the impact of the weakened housing market and the lower demand for newly constructed homes than anticipated. Despite the current setback, Jonson emphasized the underlying need for housing in Sweden and expressed BoKlok's long-term commitment to fulfilling that need.
The affected employees were informed about the layoffs on Wednesday, following which the company will initiate immediate union negotiations to address the situation and aims to provide clarity to the affected employees before the start of the vacation period.
The ongoing difficult global situation is having a serious impact on the entire Swedish housing market and is resulting in a decrease in demand for new housing. Recently, another Swedish homebuilder Götenehus Group announced the layoff of 65 employees.
