One of the country’s best-known food brands is cutting 165 jobs.
Meat producer and food company HKScan announced the job losses today, after a period of negotiations with unions which lasted over the summer.
The lay-offs will impact employees at locations in Vantaa, Forssa, Mikkeli, Paimio and Outokumpu, in a bid to cut costs and save up to €7m annually. It’s part of a wider drive to save €40m each year from 2020 onwards.
“The results have been fairly weak at HKScan in general over the years, and especially in Finland we have a fairly challenging situation at the moment. It is the company, but also related to the whole industry” says Sami Sivuranta, Executive Vice President of Operations for HKScan.
“I see anyhow that the economy is doing fairly okay in general […] but competition is tight” he tells News Now Finland.
Job cuts in Finland, expansion in Estonia & Sweden
While HKScan is scaling back the workforce in Finland, it’s investing in Estonia and Sweden too.
Earlier this month the company announced it was on track with investment in the production factory in Rakvere, making ready meals to meet a growing consumer demand.
Construction will be finished, and the new facility open in the first half of 2019.
“We are investing in the latest cooking and packaging technology to enable the launch of new ready-to-eat products […] the Rakvere plant’s products will be sold not only on the Baltic market, but throughout HKScan’s home markets” said Baltics EVP Anne Mere on 4th October.
In June, HKScan announced it was investing close €7m in a plant in Kristianstad, modernising Sweden’s largest pig slaughterhouse.
HKScan employs more than 7,300 people throughout the company in Finland, Sweden, Denmark and the Baltic countries, and exports to more than 50 countries worldwide, with net sales of €1.8 billion in 2017.