P. M. BRIEFING : Swedish Arms Firm Cuts Back
AB Bofors, Sweden’s biggest weapons producer, said today it will cut its work force by 500 employees because of falling orders from the Swedish military.
The decision follows a reduction last October by 1,300 workers. Bofors had counted on continued orders from India, but they were suspended amid allegations that Bofors paid bribes to secure a $1.3-billion artillery sale in 1986.
In all, the number of Bofors employees will be cut to about 3,000.
Company spokesman Borje Johanson said Bofors had hoped Sweden’s military would place about $200 million in orders, but “we have heard nothing.”
Johanson said Bofors’ problems are linked to the military’s dwindling funds for new armaments and to politicians’ reluctance to allocate more money at a time of international detente.
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