Type
Internal restructuring
Country
Sweden
Region
Norra Mellansverige; Gävleborgs län;
Location of affected unit(s)
Gävle
Sector
Administrative Services
Services To Buildings And Landscape Activities
Cleaning Activities
81.21 - General cleaning of buildings

330 jobs
Number of planned job losses
Job loss
Announcement Date
15 November 2018
Employment effect (start)
15 November 2018
Foreseen end date
31 December 2018

Description

Sodexo is reducing staff by 330 in Gävle, Sweden. The plans were announced on 15 of November and are expected to be in full effect by the end of 2018.

Sodexo recently lost biddings on food delivery services to elderly care and on delivery of cleaning services in the Municipality of Gävle. The company has delivered these services to Gävle since 2004, but the municipality wanted to encourage smaller companies to enter public procurement and therefore split service delivery into smaller parts this year. The lost services for Sodexo amount to a total of SEK 60 million (€5,8 million).

Sodexo employees have largely been working with so called combi-contracts, meaning that they have switched between food-related and cleaning jobs. The now lost biddings therefore force large internal restructurings for the company, with part of the staff becoming redundant. Along with splitting service delivery into smaller parts, Gävle Municipality decided to remove the requirement of full-time employment for employees in service delivery companies. This decision has been criticised by the union as it impairs working conditions for employees in delivering companies.


Sources

Citation

Eurofound (2018), Sodexo, Internal restructuring in Sweden, factsheet number 95843, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/95843.