FINLAND: Marimekko job cuts lower than expected
Apparel business Marimekko is to cut 22 jobs in Finland - half of what the company first predicted, to save the business about EUR1.5m (US$2.1m) a year.
After consultative negotiations, which started last month, the company concluded that the targeted savings could be achieved with "considerably fewer job terminations". This, the group added, will come as a result of a reorganisation of functions and operational streamlining.
It was also decided to convert up to 35 employees' jobs in company-owned stores to a part-time basis or to reduce the agreed number of working hours.
The savings will be realised gradually from the second quarter of 2014, and the full impact of the profit improvement will show in the last quarter of this year.
"The actions to be taken will boost our competitiveness in the long term and we will improve our operations in such a way that in the future we will be able to respond to the challenges of a changing business climate and the needs of our international clientele even better than before," said president and CEO Mika Ihamuotila.
"Our aim is to update processes linked in particular to design, product development and procurement. At the heart of it all are more attractive products and getting them from the drawing board into the stores more easily and quickly."
As part of the operational reorganisation, the company has assigned some new key positions in design, product development and sales. The search for a new creative director is still ongoing, the group added.
Marimekko said the negotiations on the termination of the lease on its store in Beverly Hills, with a view to moving it to a better location, are still ongoing.
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