Stockmann to cut 60 jobs in Finland

Finnish retailer Stockmann will reduce up to 60 jobs in Finland as the company is going to start a codetermination negotiations from 15 October.

The codetermination negotiations will cover 210 positions in Finland and the personnel reduction required is estimated to be 60 positions at the most, said the company in a press release on Monday.

The planned renewal of the operating model will involve the entire personnel of the Stockmann Division in all three operating countries- Finland, Estonia and Latvia.

Implementation of the measures will start gradually during the first quarter of 2022 and the planned measures will bring estimated annual savings of nearly EUR 4 million gradually as of the second half of 2022.

The personnel reductions will not affect the department store, customer service or online store operations.

Of the organisation’s current positions, about 105 will be ended, while about 45 new positions are planned.

The locations of the new positions will be assigned optimally, based on operations and cost-effectiveness, to support business operations and growth in the best possible way in the operating countries.

“We will continue to systematically implement our customer centric strategy and improve our profitability. The renewal of the operating model that is now at the planning stage is based on the need to provide better support to commercial processes. The goal is to streamline the processes by removing overlaps between functions and countries and by reducing hierarchies, which will speed up and improve our service and also cut fixed costs,” said Mikko Huttunen, Chief Transformation Officer at Stockmann in a statement.

The Stockmann Division currently employs a total of 1 735 people, of whom 1 120 work in Finland, 366 in Estonia and 249 in Latvia. The Stockmann Group as a whole, employs 5 927 people in 19 countries.