Skanska AB shares dropped nearly 7% during Wednesday’s trading session after the Swedish construction heavyweight warned of a restructuring charge and said it plans to lay off thousands of workers. In a move to boost profitability, Skanska will take a restructuring charge of 1.1 billion Swedish krona ($1.36 billion) in the fourth quarter of 2017. That will be followed by a charge in 2018 of 600 million Swedish krona. Skanska said 3,000 employees will be laid off and that move should lead to annual cost savings of 1 billion Swedish krona. The company said it will restructure its Polish operations and leave the power sector in the U.S., among other moves.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News