Type
Internal restructuring
Country
Sweden
Region
Stockholm; Stockholms län;
Location of affected unit(s)
Solna
Sector
Health / Social Work
Human Health Services And Activities
Human Health Activities
86.1 - Hospital activities

300 - 550 jobs
Number of planned job losses
Job loss
Announcement Date
14 May 2019
Employment effect (start)
Foreseen end date

Description

The public hospital Karolinska universitetssjukhuset announced plans to cut 550 positions within its administration units at all levels. The hospital announced that they need to save nearly SEK 1 billion (€92.89 million) during 2019, and the dismissals are set out as a measure to tackle economic deficits. In April 2019, the deficit was SEK 620 million (€57,59 million). The hospital director expressed in a press release that this is an 'economic emergency' for the hospital.

The economic deficit can also be seen in the light of the recent criticism against the construction of a new hospital building for Karolinska universitetssjukhuset. The criticism has mainly been about the high cost,nearly SEK 60 billion (€5,57 billion), due to a new model used in the public procurement of the construction of the building. The model makes a private actor responsible for building, running and financing the hospital. As a reaction against the increasing costs, one of the parties in the government proposed a legislation that forbids this kind of procurement in September 2018. 

Update 14/2/2020: In February 2020, the hospital informed that the dismissals will stay under the announced figure of 550 positions - the restructuring will affect between 300-400 administrative workers in total. 


Sources

Citation

Eurofound (2019), Karolinska universitetssjukhuset, Internal restructuring in Sweden, factsheet number 97730, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/97730.