Stockmann to cut 160 jobs in Finland as part of huge cost savings drive

A new sales strategy will see renewed focus on high quality products in stores and online.

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File picture showing interior of Stockmann department store / Credit: Stockmann Flickr

Famed department store chain Stockmann is looking to cut up to 160 jobs in a bid to save cash.

It’s part of a drive to reduce costs by €40 million by spring 2021, and 1700 employees are potentially affected by the co-determination negotiations – talks between employer representatives and staff union representatives which decide who should be laid off, and what terms they would get.

Stockmann says any savings from staff redundancies would only amount to about a third of the money they want to save – the company would need to institute other measures to save more money including a simplified organisational structure and a new business model.

The new business strategy includes switching up its fashion, beauty and home selections to be more premium and high quality, according to a press release.

The company will also open what it describes as “a new marketplace” as part of stockmann.com during the next few months – part of the continued focus on digital sales growth.

Stockmann CEO quit in March

It’s been a turbulent time for Stockmann in recent months.

After issuing a profit warning in March, CEO Lauri Veijalainen quit to take a new job outside the company. He started working at Stockmann in 2010 and had been in his CEO role since 2016.

Earlier in April the company issued a profit warning, revising its 2019 earnings downwards.

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