Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Stora Enso, a Finnish-Swedish pulp and paper manufacturer, is to cut about 2000 jobs worlwide, of which some 1000 jobs in Finland. Stora Enso's annual cost savings target from Business Area consolidation and significantly leaner administration is EUR 250 million by end of 2010. "The final outcome will depend on the result of the personnel negotiations procedure", says Stora Enso CEO Jouko Karvinen.
"In the past two years Stora Enso has taken several proactive and even early steps to position the Group for a strong future. From divestments that strengthened our balance sheet to difficult restructuring programs in operations and de-layering the organisation, which together reduced our total fixed costs by 4 to 5 margin points in two years, we have had one consistent goal - to make the Group stronger, faster reacting and more focused. And yet - with the dramatic changes in our operating environment - this has been only the beginning of our journey," says Stora Enso CEO Jouko Karvinen.
The planned actions are partially motivated by the recent, radical change in the operating environment of the forest products industry. The global financial crisis and sharp economic downturn require rapid responses to adapt to change.
The savings will be obtained, according to the plan, mainly by reducing top and middle management and by downscaling staff functions and country organisations by one third. In addition, Group functions such as Wood Supply and Logistics will have a revised operational model and be brought closer to the Business Areas.
"The critical supply organisations Wood Supply, Logistics and Energy will be managed by Business Area driven user boards to increase the clarity and accountability of these P/L and balance sheet responsible organisations. Other Group functions, including Human Resources, Communications, R&D and Purchasing, will be focused by reducing Group and country-level organisations to the absolute minimum where quantifiable cross Business Area economies of scale are clearly greater than the benefits of being close to the business organisations," says Jouko Karvinen.
Stora Enso is operating in more than 40 countries and currently employs 36,000 people.
Eurofound (2009), Stora Enso, Internal restructuring in World, factsheet number 68886, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/68886.
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