Citycon cost savings programme targets EUR 5 million in savings to improve efficiency and profitability
CITYCON OYJ Investor News 23 May 2016 at 12:10 hrs
Following the acquisition and integration of the Norwegian organisation (previously Sektor) into Citycon, the company initiates a reorganisation and group-wide cost savings programme that will lead to further synergies and increase organisational efficiency.
The programme aims to structurally reduce operating and administrative expenses and create room for further growth. The savings target is EUR 5 million—around EUR 2 million in administrative expenses and the rest in operating expenses. The cost savings are expected to be achieved in 2017. The targeted savings are in addition to the already materialised administrative cost savings in Norway of approximately EUR 1.5 million.
The programme requires reorganisation measures in the Norwegian Business Unit as well as in certain centralized Group functions. According to the company’s current estimate, the programme may lead to personnel reductions of a maximum of 30 employees.
Helsinki, 23 May 2016
For further information, please contact:
Marcel Kokkeel, CEO
Tel. +358 20 766 4521 or +358 40 154 6760
Eero Sihvonen, Executive Vice President and CFO
Tel. +358 20 766 4459 or +358 50 557 9137
Citycon Oyj (Nasdaq Helsinki: CTY1S) is a leading owner, developer and manager of urban grocery-anchored shopping centres in the Nordic and Baltic regions, managing assets that total close to EUR 5 billion and with a market capitalisation of approximately EUR 2 billion. For more information about Citycon, please visit www.citycon.com