Fiskars plans to increase efficiencies with the new organizational structure
Fiskars Corporation
Stock Exchange Release
November 10, 2016 at 10:00 EET
Fiskars plans to increase efficiencies with the new organizational structure
With the planned new organizational structure announced today, Fiskars is proposing to reduce positions in areas where there are currently overlaps or potential to seek efficiencies.
"Based on our strategy to build global businesses and brands, we introduced today a new planned organizational structure that is better aligned with the strategy and would allow us to move faster. These proposed reductions are aimed to reduce overlaps and strengthen our competitiveness”, said Kari Kauniskangas, President and CEO, Fiskars Corporation. “Unfortunately the planned changes may have an impact on employees. We will support our employees during the possible transition."
Including the addition of a number of new positions, the net reduction of Fiskars’ personnel is estimated to be 130 positions globally. The proposed reductions are expected to take place in 2017. Employees in manufacturing and distribution centre operations are not in scope of the proposed personnel reductions.
Fiskars is on a transformation journey to become an integrated consumer goods company with a family of iconic lifestyle brands. In connection with the planned organizational structure Fiskars launches an Alignment program to proceed in the transformation. The program focuses on the planned structural changes, proposed headcount reductions announced today and the full integration of the English & Crystal Living business, acquired last year.
The total costs of the planned program are approximately EUR 15 million in 2016–2017, which are planned to be recorded as adjustments to the operating profit. The targeted annual cost savings are approximately EUR 14 million, subject to the full implementation of the program. The targeted cost savings would be achieved gradually, starting next year and with the full effect in 2018.
As the planning progresses, Fiskars will engage and work closely with its employees and employee representatives to ensure that they are fully informed and consulted about our proposals. Processes and timelines will vary from one country to another.
FISKARS CORPORATION
Kari Kauniskangas
President and CEO
Media and analyst contacts:
Head of Corporate Communications and Corporate Responsibility Maija Taimi, tel. +358 204 39 5031, communications@fiskars.com
Fiskars – Making the everyday extraordinary
Fiskars serves consumers and customers around the world with a brand portfolio of globally recognized brands including Fiskars, Gerber, Iittala, Royal Copenhagen, Waterford, and Wedgwood. Building on our mission to create a family of iconic lifestyle brands, Fiskars’ vision is to create a positive, lasting impact on our quality of life. Please visit www.fiskarsgroup.com for more information.