Marimekko Corporation, Stock Exchange Release 14 January 2016 at 9.00 a.m.
MARIMEKKO IS PLANNING TO STREAMLINE ITS OPERATIONS
The long-term uncertainty over the global economy and the difficult situation in the retail trade in Finland have impacted on consumer spending behaviour in Marimekko’s main market areas. This has created a need to enhance the company’s profitability. As part of measures to improve profitability, Marimekko is planning to streamline its operations and cost structure, which is estimated to result in the elimination of a maximum of 55 jobs in Finland. All of the company’s fixed costs will also be scrutinised. “Marimekko will continue its international growth strategy, which is especially important in particular because our domestic market has deteriorated. Currently our cost structure is burdening our competitiveness and profitability. Therefore, we have to streamline and reorganise our operations in order to ensure processes and procedures that are cost-efficient and appropriate for an international company. The changes brought about by digitalisation in our sector also make it necessary to assess the suitability of our current operating model. As part of a comprehensive cost review, we will unfortunately have to initiate consultative negotiations,” says Tiina Alahuhta-Kasko, President. The consultative negotiations will include all operations in Finland with the exception of the personnel in company-owned retail stores. If realised, the planned actions will lead to downsizing the company’s different functions at its Herttoniemi headquarters and factory in Finland. If implemented to its full extent, the reorganisation can yield annual savings in costs estimated at roughly 2.4 million euros and an improvement in operating result.
Apart from possible job reductions, the negotiations will also consider possible changes to job descriptions, working methods and the organisation of work, which would have a significant effect on the position of employees, as well as possible outsourcing of some functions. At the end of September 2015, Marimekko had 444 employees, 330 of whom worked in Finland.
Further information: Tiina Alahuhta-Kasko, President, tel. +358 9 758 71
MARIMEKKO CORPORATION Corporate Communications Asta Halme Tel. +358 9 7587 233 asta.halme@marimekko.com
DISTRIBUTION: NASDAQ Helsinki Ltd Key media
Marimekko is a Finnish design company renowned for its original prints and colours. The company’s product portfolio includes high-quality clothing, bags and accessories as well as home décor items ranging from textiles to tableware. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. Marimekko products are sold in about 40 countries. In 2014, brand sales of the products worldwide amounted to EUR 187 million and the company's net sales were EUR 94 million. More than 140 Marimekko stores serve customers around the globe. The key markets are Northern Europe, North America and the Asia-Pacific region. The Group employs about 500 people. The company’s share is quoted on NASDAQ Helsinki Ltd. www.marimekko.com
