Itella to start cooperation negotiations

Itella clarifies its financial goals and launches performance improvement program worth about EUR 100 million cost-cutting
 
Itella Group starts cooperation negotiations to improve the performance. Despite earlier rationalization measures, the results are not at the targeted level and the operating environment is going through considerable changes. Printed materials are increasingly substituted by electronic ones thus decreasing Itella’s delivery volumes. Competition has intensified and economic growth slowed down, the company announces.
 
Itella launched a cost-cutting program in 2011. The program has achieved estimated savings of EUR 53 million. However, despite the steps taken, Itella’s performance is not at the intended level, which means that the group is launching a new performance improvement initative for 2013-2014 to secure its competitiveness and profitability. The target of this new program is to achieve a cost saving of EUR 100 million.
 
Cooperation negotiations will start in Finland on April 15th 2013. The planned changes concern centralized and decentralized Group Functions, Itella Mail Communications and Itella Logistics business groups in Finland, Denmark, Sweden, Norway, Estonia, Latvia, Lithuania and Poland.
 
In all countries, the cooperation negotiations and changes affect altogether about 1,500 people working mainly in administrative expert or supervisory positions. Based on a preliminary estimate, the number of redundancies is estimated to be 350 people at most, of which 290 people at most in Finland.
 
The cooperation negotiations about to start now will not affect daily postal services in Post offices, customer service or production duties, such as sorting and delivery, transportation or service warehouse operations.
 
In Finland, Itella Group will offer the people made redundant a severance package including a compensation proportionate to the duration of employment, from job to job support package for the job market outside Itella, retirement options, and statutory measures concerning transition security. In other countries, Itella will proceed in accordance with local laws and practices.
 
Itella Group with headquarter in Helsinki (Finland) provides solutions for managing information and product flows. Itella operates in the fields of mail communications, logistics, and financial management in Europe and Russia. Net sales in 2012 amounted to EUR 1,947 million. The number of staff is approximately 27,500. 

Quelle: LogEastics

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