Swedish defense contractor Saab is undergoing a workforce expansion, aiming to add 3,000 net new employees by the end of 2026 to meet surging global demand for military hardware. According to CEO Micael Johansson, the company has already recruited 1,600 people this year, fueling production capacity for major contracts including A26 submarines, Gripen E fighter jets, and GlobalEye surveillance systems.
Rapid Workforce Expansion and Production Scaling
Saab is scaling its operations. With a current hiring rate of 3,000 net employees annually, the company is prioritizing industrial growth in Sweden, where approximately 80 percent of the new jobs are being created. CEO Micael Johansson told the news outlet Ny Teknik that the company is actively investing in new factory facilities and increasing stockpiles of critical raw materials and components.
Despite the rapid tempo, Johansson maintains that the company has avoided significant production bottlenecks. This expansion is directly tied to a massive influx of orders. Saab reported that its order intake more than doubled in the second quarter of this year, compared to the same period of 2023. The company’s revenue rose by nearly 30 percent, while operating profits climbed 41 percent.
Did you know?
Saab’s order book includes projects stretching well into the next decade. The A26 submarine contract with Poland, a major investment, includes deliveries scheduled as late as 2038.
Major Defense Contracts Driving Growth
Saab’s growth trajectory is anchored by several high-profile international agreements. The most significant is the Polish order for three A26-class submarines, a deal that includes comprehensive training, long-term support, and weaponry. Additionally, the company secured a contract for 16 Gripen E fighter jets destined for Ukraine.
The company is also playing a role in NATO’s modernization. In July, the alliance selected Saab’s GlobalEye as the basis for negotiations to replace the aging E-3A AWACS fleet. GlobalEye, which utilizes the Bombardier Global 6500 business jet platform, offers multi-domain surveillance capabilities, tracking targets across air, land, and sea. Furthermore, Saab recently secured a contract to supply kampsystems, sensors, and composite materials for four new German frigates, with deliveries spanning 2029 to 2032.
The Future of Autonomous Warfare
Beyond traditional hardware, Saab is heavily investing in autonomous and unmanned systems. The company is currently developing unmanned aerial vehicles designed to operate in tandem with the Gripen fighter jet. This follows earlier initiatives, such as the development of drone swarms and the conversion of the Stridsbåt 90 combat boat into an autonomous, crewless vessel.
Counter-drone technology is another pillar of this strategy. Sweden has already placed an order for a mobile anti-drone system from Saab. Johansson remains optimistic about the long-term outlook, stating that he is convinced the current growth in demand for defense technology will continue for several years.
Pro Tip:
When analyzing defense sector growth, look at the ratio of order intake to operating profit.
Frequently Asked Questions
How many people is Saab planning to hire?
Saab plans to add 3,000 net new employees by the end of 2026, with 80 percent of those roles based in Sweden.
What is driving Saab’s current growth?
Growth is driven by a surge in demand for sensors, combat aircraft, maritime systems, and autonomous technology, highlighted by major contracts with Poland, Ukraine, and NATO.
Is Saab working on drone technology?
Yes, Saab is developing drone swarms, unmanned combat aerial vehicles to support the Gripen, and mobile anti-drone defense systems.
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