Finnish Fiskars Group known for its iconic scissors, premium kitchenware and gardening tools is set to lay off about 220 office workers globally to reduce costs.
In Finland, the negotiations concern 476 employees in office roles. According to the company, a maximum of 60 employees will be cut, but also a number of new roles are expected to be created.
“As the business environment continues to evolve, we are shaping our future and positioning Fiskars Group for increased consumer focus in alignment with our strategic priorities. We continue to build one company with a common purpose, strategy and values, strengthening our competitiveness,” says President and CEO Jaana Tuominen of Fiskars Group in a statement.
Consultation processes will be initiated in other affected countries according to local practices and legislation. Timelines will vary from one country to another.
Employees in retail stores, manufacturing and distribution center operations are not in the scope of the consultations starting in Finland in January 2020.
“While these actions will ensure opportunities to invest in our future, they are hard given the expected impact on our employees. We will support our employees throughout the process and will communicate transparently and inclusively,” Peltonen says.
By reducing the number of workers Fiskars Group seeks annual net cost savings of approximately 20 million euros, subject to the full implementation of the program titled “Restructuring.” The Restructuring Program also includes “the removal of overlaps in the organization and simplified processes and ways of working.”
The targeted cost savings are expected to be achieved gradually, and the majority of the savings are expected to materialize in the group’s results during the program, which is estimated to be completed by the end of 2021.
The total costs of the Restructuring Program are expected to be approximately 30 million euros by the end of 2021. They will be recorded as items affecting comparability (IAC) and have a cash flow impact. At the same time, Fiskars Group continues the investments in growth initiatives that are expected to add sustainable value in the long-term, for example in e-commerce and new business opportunities.
At the end of 2019, Fiskars Group had approximately 7,300 employees, of whom 1,100 were in Finland.