Building a new operating model for Stockmann is progressing – codetermination negotiations have been completed
STOCKMANN plc, Investor news 13.6.2019 at 16:00 EET
In order to become a healthy business and turn the result into profit, Stockmann requires significant renewal and reduction of costs. As of 1 July 2019, the Stockmann Group will introduce a simplified organisational structure, where the Stockmann Retail and Real Estate divisions as well the Group’s shared functions will be combined into a new Stockmann division.
The new operating model based on the new structure was negotiated with the personnel as part of the codetermination negotiations which started in May. As a result of the negotiations, approximately 150 positions will be ended, most of them through lay-offs. The number of sales people in the department stores will not be reduced. At the start of the negotiations, which concerned around 1 600 persons in Finland, the reduction need was estimated to be a maximum of 160 employees.
The aim is to reduce costs by at least EUR 40 million by spring 2021, of which a major part will already be visible in the 2020 results. The reduction in personnel costs will be less than one third of the total target and over two thirds of the total will come from other savings. The company will book a provision of EUR 2.5 million related to the organisational restructuring measures in the second quarter.
Further information: Lauri Ratia, Chairman of the Board of Directors, tel. +358 50 2922 Nora Malin, Director, Corporate Development, tel. +358 400 612 414