"These actions will allow us to continue to prioritize innovation and to develop our technology leadership in order to support our customers' operations and improve their productivity," said Helena Hedblom, Epiroc's President and CEO.

The notices are for 350 positions in Örebro and 75 positions in Fagersta, Sweden, of which half are positions in production.

The action is the result of Epiroc facing a significant drop in demand from customers due to the COVID-19 pandemic's effects on the global economy. The work reductions are also part of Epiroc's continuous effort to become as agile and efficient as possible and follows various efficiency measures taken worldwide since 2019.

"We are taking these actions to adapt to the new market situation following the COVID-19 pandemic and to make us stronger and more resilient for the future. Unfortunately, we must take such a drastic action as giving notice of termination. We regret the negative consequences this will have for our colleagues and those close to them, and we will support our employees in this difficult situation," added Hedblom.

Örebro is a main manufacturing and research and development hub for Epiroc's underground and surface equipment as well as for service and spare parts supply, and Fagersta is home to Epiroc's rock drilling tools business.

Epiroc has about 3,100 employees in Sweden, out of a global workforce of approximately 14,000.