HKScan has announced a restructure of its business

HKScan has announced a restructure of its business

HKScan has announced it is to make job cuts as it plans to restructure its domestic business.

The Finland-based meat group estimated "no more than" 75 management-level and office staff would be affected. The firm's head office employs approximately 400 staff.

The planned restructure aims to achieve an annual profit improvement of approximately EUR4m (US$5.3m).

"Tough competition in the Finnish meat industry, combined with the impact of export challenges, has had a tangible adverse impact on HKScan Group's financial performance," the firm said. 

The process will start on Monday (11 August) and is expected to last between six and eight weeks.

In the last 18 months, HKScan has made a series of restructuring moves to simplify its businesses in Finland and in overseas markets in order to improve its profitability.

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HKScan intends to initiate statutory employee negotiations in Finland. The negotiations concern potential headcount reductions associated with the forthcoming restructuring of the Group’s operations in Finland, targeting an annual profit improvement of approximately four million euros.

The restructuring process is scheduled to be completed by the end of 2014. Tough competition in the Finnish meat industry, combined with the impact of export challenges, has had a tangible adverse impact on HKScan Group’s financial performance. HKScan Finland’s year-to-date result was negative.

HKScan plans to continue to harmonizing its organisation and consolidating its structure in order to improve profitability in Finland. With the planned restructuring, HKScan aims to reduce costs, improve operational efficiency and anchor a more business-driven way of working.

The statutory negotiations proposed today and the planned restructuring process will impact the majority of HKScan Group’s office and managerial personnel in Finland, amounting to a total of approximately 400 employees. The anticipated headcount reduction is estimated to concern no more than 75 office or managerial employees. The negotiations will commence on Monday, 11 August 2014 and their estimated duration will be 6–8 weeks.

The need for any headcount reduction and the possible number of affected employees will be determined in the course of the negotiations. HKScan currently has on average roughly 2 800 employees in Finland.

Original source: HKScan