Stockmann is renewing the support functions of its Retail and Real Estate businesses and its Group Administration in Finland.
Now the negotiations have been concluded and 100 jobs will be reduced in support functions.
“By streamlining our support function processes we can increase the agility of our operations and improve our competitiveness,” says CEO Per Thelin.
Stockmann expects to attain the full saving target of 50 million EUR by the end of 2016. A significant part of the cost savings will be reached through personnel reductions which may affect up to 420 people in support functions in Finland and Russia during 2015 and 2016. The estimated reduction need in Finland is a maximum of 260 persons.
The codetermination negotiations concerned approximately 1 100 persons working in support functions and negotiations associated with these changes have now been concluded. As the outcome of the negotiations, 100 jobs will be reduced in support functions. 56 of this figure will be achieved through dismissals and the remaining part will mainly include endings of fixed-term contracts.
The changes are based on Stockmann’s new strategy, under which the company will focus on its key businesses and explore new and even better ways to fulfil its customers’ wishes.
”Our goal is to boost our operating efficiency in the current market environment and return Stockmann to profitability. The primary purpose of the new service functions is to ensure that our sales staff can focus on sales and the customers at our department stores,” says CEO Per Thelin.