The announcement comes in connection with the quarterly report, where Wästbygg reports increasing turnover in the first quarter of 2023 compared to the same period the year before, but where operating profit decreased at the same time as order intake fell significantly.

Wästbygg is now taking cost-saving measures and notifying 70 people of layoffs.

"During 2022, despite challenges in the market, we were able to achieve positive growth within the Wästbygg Gruppen, but the result did not reach the desired level. As we have seen clear signals that the worse economic situation will persist for a longer period of time, the work to restore profitability has through a program of measures initiated. One of the measures includes notice to employees. Such a decision is never easy to make, but in order to continue building a long-term strong and profitable group, we need to adapt the operations," says Jonas Jönehall, President and CEO of Wästbygg Gruppen in the interim report.

Decisions have also been made to shut down the group company Inwita Fastigheter, and thus the investment in building up a property portfolio of self-developed community properties in favor of an increased focus on the core business.

"When we now wind down Inwita and focus on being solely the hybrid of project developer and contracting company, which has always been the core of our business, we become clearer to the market. By consolidating our resources, we will also become stronger in the long term," comments Jonas Jönehall.

Costs related to the restructuring will burden the second quarter of 2023, the company writes.