Södra Restructures Operations and Eliminates 200 Positions

On Tuesday, Södra, Sweden’s largest forest owners’ association, announced that it has initiated an action program aimed at strengthening its long-term competitiveness and profitability in response to a challenging global market. The program includes organizational changes and the reduction of about 200 positions across its facilities in Mönsterås, Mörrum, Värö, and Växjö.

The company cited rapid currency fluctuations, geopolitical unrest, and an unsustainable gap between raw material and finished product prices as key pressures on profitability. Union negotiations have begun with affected parties, covering both blue- and white-collar employees.

The program focuses on clear priorities, tighter cost control, and accelerated digitalization and AI adoption as enablers of efficiency. Ongoing work on health and safety will continue as part of the initiative.

Södra said the measures are essential to protect investment capacity and maintain competitive prices for its members’ forest raw materials. The company reaffirmed its strategy to “make more of every tree” and to continue contributing to the green transition.

Lotta Lyrå, President and CEO of Södra, said:

“We are in a situation that requires us to act decisively in order to strengthen ourselves in the long term. We respect that a decision like this affects both people and the business, and we take responsibility for ensuring that the change takes place with the greatest possible care. During the process, we will offer support to affected employees.”

“Our mission is to renew and refine the values of the forest farm, and this requires us to be competitive throughout our value chain and industry, regardless of the external situation. To succeed, we need to both accelerate and slow down: continue to invest for the future, but also adapt the business to new conditions.”