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Hundreds of jobs at risk as Stockmann announces further cuts

The department store chain announced it is beginning negotiations with unions over plans to cut 380 non-sales jobs from its payroll. Although profits grew this year, acting CEO Lauri Veijalainen said the group’s sales performance has not met expectations.

Helsingin Stockmann.
Image: Jyrki Lyytikkä / Yle

Hundreds of jobs at the department store chain Stockmann are facing the axe, as the struggling firm attempts to revive its finances.

The group announced it is beginning negotiations with unions over plans to cut 380 non-sales jobs from its payroll. The company says the reductions will be made by redundancies, cutting temporary staff and not replacing retirees, and is part of a restructure strategy announced in 2014.

Stockmann wants to make savings of 20 million euros per year. Although profits grew this year, acting CEO Lauri Veijalainen said the group’s sales performance has not met expectations in a challenging market.

Veijalainen was appointed in April as interim head after Per Thelin abruptly left after just over a year as CEO. Thelin presided over the sell-off of Stockmann’s Seppälä clothing outlets and Academic Bookstore chain, and offloaded staff in response to sluggish sales, particularly in Russia.

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