Codetermination negotiations concluded in Stockmann’s support functions: new service functions introduced

Helsinki, Finland, 2015-06-02 08:00 CEST (GLOBE NEWSWIRE) —
STOCKMANN plc, Company Announcement 2.6.2015 at 9:00 EET

Stockmann is renewing the support functions of its Retail and Real Estate businesses and its Group Administration in Finland. The codetermination negotiations associated with these changes have now been concluded. As the outcome of the negotiations, 100 jobs will be reduced in support functions. 56 of this figure will be achieved through dismissals and the remaining part will mainly include endings of fixed-term contracts. The codetermination negotiations concerned approximately 1 100 persons working in support functions. The negotiations did not concern sales personnel in the department stores.

The changes are based on Stockmann’s new strategy, under which the company will focus on its key businesses and explore new and even better ways to fulfil its customers’ wishes.

“By streamlining our support function processes we can increase the agility of our operations and improve our competitiveness. Our goal is to boost our operating efficiency in the current market environment and return Stockmann to profitability. The primary purpose of the new service functions is to ensure that our sales staff can focus on sales and the customers at our department stores,” says CEO Per Thelin.

The negotiations now concluded are part of our efficiency programme, with which Stockmann will seek EUR 50 million in annual cost-savings mainly from the beginning of 2016. Stockmann expects to attain the full saving target by the end of 2016. A significant part of the cost savings will be reached through personnel reductions which may affect up to 420 people in support functions in Finland and Russia during 2015 and 2016. The estimated reduction need in Finland is a maximum of 260 persons.

Further information:
Per Thelin, CEO, tel. +358 9 121 5801
Nora Malin, Director, Corporate Communications, tel. +358 9 121 3558

www.lindex-group.com

STOCKMANN plc

Per Thelin
CEO

Distribution:
Nasdaq Helsinki
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