FINLAND: Stockmann to cut 330 jobs as restructuring continues
Finnish fashion and department store retailer Stockmann Group is pressing on with restructuring measures, which it hopes will reverse falling profits, resulting in 330 job losses.
Stockmann made several permanent and temporary cost reductions last year, from which it achieved savings of EUR30m (US$50.4m). Earnings in Finland, however, fell in fiscal 2013, despite the cost savings.
"We cannot achieve any more savings with temporary measures, such as layoffs and reductions in the number of seasonal employees, without compromising our customer service," said Maisa Romanainen, director of the department store division. "We have to press on with our restructuring measures to ensure that the sales professionals at our stores can focus solely on selling."
The restructuring, she says, will create an organisation focused on sales and customer service and will see 330 jobs cut across the department store, customer service, and after-marketing. Negotiations will also changes to job descriptions.
In Stockmann's department store division, the goal is to create "an efficient sales-focused organisation that serves customers both at stores and online". The company is looking to achieve annual savings of around EUR10m from the cuts.
"There is no improvement in sight, as consumers' purchasing power is being reduced and confidence in the economy is low. If we are to succeed in keeping our department stores competitive, we must renew our structures," Romanainen explained.
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