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Marimekko ends consultations on reorganisation
16 Mar '16
3 min read
Finnish home textiles retailer Marimekko Corporation said consultative negotiations to reorganise its operations started in January 2016 have been concluded.
“The negotiations relate to streamlining the company's operations included all operations in Finland with the exception of the personnel in company-owned retail stores,” a press release informed.
When the negotiations started, the permanent overall need for downsizing was estimated at a maximum of 55 jobs.
“However, the negotiations reached a conclusion that operations can be streamlined with fewer job terminations than estimated,” the retailer observed.
The streamlining and reorganisation of operations as well as outsourcing will concern a maximum of 55 jobs of which a minimum of 35 will lead to termination.
According to the company's estimate, 15 persons will be offered a new job and in addition about 5 jobs will be discontinued due to other internal arrangements.
The impacts of the implemented organisational change are also reflected in the company's foreign subsidiaries and will lead to some local organisational restructuring.
The aim of reorganising operations and implementing other measures was to yield annual cost savings estimated at approximately €2.4 million and an improvement in operating result.
Annual savings from streamlining operations and reorganisation will now be approximately €2.1 million.
According to Marimekko, the majority of the profit improvement resulting from the cost savings will be visible as of the second quarter of 2016.
In connection with the downsizing, the company will post a restructuring provision of approximately €0.8 million for the first quarter of 2016.
Marimekko further added that it will support reemployment of those losing their jobs, for instance by offering training for job-seeking.
As a part of streamlining operations, Marimekko's chief product officer (CPO) Niina Nenonen resigns her membership of the company's management group as of March 15, 2016.
She however, continues with the company as a head of global partner sales responsible for the strategically important partner markets especially focused in Asia.
The company will also initiate a recruitment process for chief supply chain officer who will be responsible for the supply chain.
The target, according to the retailer, is to develop the efficiency of the company's production, sourcing, and logistics while taking care of Marimekko's coherent quality level and corporate responsibility. (AR)
“The negotiations relate to streamlining the company's operations included all operations in Finland with the exception of the personnel in company-owned retail stores,” a press release informed.
When the negotiations started, the permanent overall need for downsizing was estimated at a maximum of 55 jobs.
“However, the negotiations reached a conclusion that operations can be streamlined with fewer job terminations than estimated,” the retailer observed.
The streamlining and reorganisation of operations as well as outsourcing will concern a maximum of 55 jobs of which a minimum of 35 will lead to termination.
According to the company's estimate, 15 persons will be offered a new job and in addition about 5 jobs will be discontinued due to other internal arrangements.
The impacts of the implemented organisational change are also reflected in the company's foreign subsidiaries and will lead to some local organisational restructuring.
The aim of reorganising operations and implementing other measures was to yield annual cost savings estimated at approximately €2.4 million and an improvement in operating result.
Annual savings from streamlining operations and reorganisation will now be approximately €2.1 million.
According to Marimekko, the majority of the profit improvement resulting from the cost savings will be visible as of the second quarter of 2016.
In connection with the downsizing, the company will post a restructuring provision of approximately €0.8 million for the first quarter of 2016.
Marimekko further added that it will support reemployment of those losing their jobs, for instance by offering training for job-seeking.
As a part of streamlining operations, Marimekko's chief product officer (CPO) Niina Nenonen resigns her membership of the company's management group as of March 15, 2016.
She however, continues with the company as a head of global partner sales responsible for the strategically important partner markets especially focused in Asia.
The company will also initiate a recruitment process for chief supply chain officer who will be responsible for the supply chain.
The target, according to the retailer, is to develop the efficiency of the company's production, sourcing, and logistics while taking care of Marimekko's coherent quality level and corporate responsibility. (AR)
Fibre2Fashion News Desk – India
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