At the start of 2024, a significant drop in demand in the European heat pump market became evident. In response to this situation, NIBE Group announced on February 16 the implementation of a cost-reduction plan, primarily targeting staff and indirect expenses within the NIBE Climate Solutions division in Europe.
The company has now entered negotiations to adjust costs and staffing levels in line with the reduced sales volume. The goal is to build a strong foundation for a right-sized and more efficient organization that will be well-positioned when the market recovers. Following the implementation of this plan, the group’s workforce in Sweden will be reduced by approximately 340 employees—around 264 from NIBE AB and 40 from CTC AB. Similar negotiations for workforce reductions are being initiated at other European sites.
NIBE’s CEO and Managing Director, Gerteric Lindquist, stated, “We have long believed in the future growth potential of a fossil fuel-free society and reduced carbon emissions, and we are well positioned in this market.” He added, “This is a very difficult decision that involves letting go of loyal employees, but given the challenging market environment, it is necessary. We are doing our utmost to navigate this downturn in the best possible way so we can emerge stronger when the market rebounds.”
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