Feb. 1, 2024 (Press Release) - Due to the continued weak and uncertain market environment, Stora Enso plans to initiate a new profit improvement programme targeting annualised EUR 80 million improvement of the operational EBIT. This could lead to a potential reduction of approximately 1,000 employees. Local change negotiations in line with the local legislations will start as soon as country specific plans are further detailed.
The profit improvement programme is designed to improve Stora Enso's long-term competitiveness by focusing on core business activities that can drive the Group's strategy supported by a decentralised operating model. The profit improvement programme would be implemented without any new production site closures.
The majority of the savings would materialise during 2025, and the larger part of the employee reductions are planned to take place during the first half of 2024. The employee reductions, efficiency improvements and synergy opportunities would impact all divisions and Group functions and reflect the size of their respective organisations.
"Although difficult, this plan is necessary to ensure our long-term success and competitiveness, said Hans Sohlström, Stora Enso's President and CEO. "Last year, we completed a restructuring programme which led to the identification of synergy opportunities, which we plan to address with our new profit improvement initiative. We are facing persistent weakness in the macroeconomic and geopolitical environment and need to focus on core business activities which align with our strategy. Through this programme we would strengthen our focus on profitability making us more competitive and resilient to market uncertainties."
No decisions regarding the planned employee reductions will be taken until the change negotiations have been concluded according to local regulations.
At the end of last year Stora Enso completed a restructuring programme which was initiated in June 2023. The programme resulted in an annual operational EBIT improvement of EUR 110 million and 1,150 employee reductions.
Stora Enso is a leading provider of renewable products in packaging, biomaterials and wooden construction, and one of the largest private forest owners in the world.
SOURCE: Stora Enso
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