Stora Enso announces the second phase of its €200m "streamlining and structure simplification programme"; plans to cut approximately 2,500 positions worldwide.
Stora Enso has revealed further details of its major business restructuring project announced back in April. According to Stora Enso, the programme is intended to achieve annual fixed cost savings of €200m and will help the company to focus its different businesses, simplify its operations and enable a stronger focus on growth in value creating businesses.
The second phase of Stora Enso's "streamlining and structure simplification programme" could see cuts of 2,250 jobs across Europe, 650 of which in Finland and 750 in Sweden, the company explained in a press release on 18 June. In addition, approximately 250 positions would be reduced outside Europe. Cost-efficiency and rightsizing actions were being planned by each business area, group service and function and all plans were subject to co-determination negotiations at local levels. The reductions announced today don’t include any capacity cuts, the Helsinki-based company said in the statement.
The full impact of the €200m cost-cutting and streamlining action plan is expected to be seen as of the second quarter of 2014. Non-recurring costs and expenses of the programme are to be incurred in the company's second and third quarter results of 2013.