Stockmann to axe 160 staff to save €40m

The retail giant Stockmann announced Tuesday its decision to lay off a maximum of 160 of its staff in the country as a partial process of restructuring its operations.

The company in a press release said it will commence codetermination negotiations affecting approximately 160 of its employees in Finland to finish with the restructuring process as soon as possible. In fiscal terms, the aim is to reduce costs by at least EUR 40 million by spring 2021, a significant advancement towards that end will already be visible in the 2020 financial results, claimed the press release.

The reduction in personnel costs is estimated to account for a little less than EUR 40 million or one third of the company’s total cost-cutting target, but the rest or more than two thirds of the target is expected to met with other savings.

However, the number of salespeople in Stockmann department stores will not be an agenda of the codetermination negotiations.

The release also noted that the performance improvement programme initiative planned early this year are also included in the newly planned savings target.