Husqvarna plans to shed about 600 jobs in a move that will save over £20 million a year by 2014. “The proposed measures aim to improve efficiency, reduce the fixed cost base and further increase flexibility,” Chief Executive Officer Hans Linnarson said in a statement.

Almost half the job losses will come in Sweden where the company is based, it said. The cuts will be carried out during the first six months of next year after negotiations with unions. The cuts will cost about 25 million krona (£23 million) to implement, which will be charged to fourth-quarter operating income, the company said.

The chainsaw and garden machinery manufacturers which includes McCulloch, Gardena, Flymo and Husqvarna brands has seen its shares rise 26 percent this year on the Swedish market  compared with an 9.1 percent increase in the Stockholm SAX index.

The company, which employs about 15,860 people has about 40 percent of its sales in the Americas and following its Q3 results (see The Cut 2 November) said that demand there and in Europe continued to be challenging during the third quarter.