Residential developer Bonava is restructuring and adapting its activities in Germany, Sweden, and Finland to boost long-term competitiveness and profitability.
The measures are expected to result in annual savings of SEK 400 mln (€35 mln) from 2025.
The restructuring is being implemented in response to the challenging market for newbuilt housing. Sales have stabilized at low levels, resulting in reduced production volumes.
Bonava plans to restructure its German organization to make it more flexible and competitive, as well as more efficient and customer-oriented.
As one of the most active residential developers in Germany, Bonava claims it is well-positioned to succeed in this market, which is less volatile than Sweden.
The German market also differs from the Swedish market as a larger part of home financing is based on savings, and consumers have a more long-term perspective.
Peter Wallin, CEO and president of Bonava, commented: ‘We are one of Germany’s largest residential developers, and our position in the market is strong. We operate in the most rapidly growing segments, combined with a competitive business model. The market is undergoing changes, and to strengthen long-term competitiveness and profitability we are now creating an even more efficient, customer-oriented, and flexible organisation that can easily be scaled up.’
The largest proportion of the 400 planned job losses will be in Germany, while around 100 positions will be lost in Sweden and Finland.
Bonava is confident that the restructuring measures will make the company more efficient, customer-oriented, and flexible, and better positioned to compete in the long term.