Tikkurila efficiency program will result in the reduction of 500 employees
October 3, 2018 at 9:00 a.m. (CET+1)
Divestments and closing down certain business operations and sites will reduce Tikkurila’s personnel by 290 employees and other headcount reductions by 210 employees compared to the end of 2017. In addition, Tikkurila will temporarily lay off blue-collar workers in Finland.
In 2017, Tikkurila initiated an extensive program to boost profitability. The program is aimed at generating at least EUR 30 million in savings. Improved cost competitiveness will support Tikkurila in seeking new growth opportunities.
Closing down of operations and sites, and divestments will result in the reduction of the headcount by 290
As a part of the efficiency program and optimization of the production network, Tikkurila has decided to close down a small production unit in Lunderskov, Denmark. The unit focuses on the production of energy-efficient roof coating solutions, the production of which will be relocated to the site in Finland during 2019. The closing down of the production unit in Lunderskov will result in 20 terminated positions during 2019. Other Tikkurila operations in Denmark will continue as before.
Previously, Tikkurila has announced the divestment of business operations in the Balkan area, discontinuation of operations in Germany and the closing down of a small production site in Stary Oskol, Russia. These measures and the closing down of the unit in Lunderskov will result in the reduction of the headcount by 290.
Other headcount reductions will result in 210 terminated positions
As part of the efficiency program and cutting fixed expenses, Tikkurila announced, in August 2018, plans to make headcount reductions for areas in which overlaps, and opportunities to streamline operations have been identified. As a result of the reductions and other arrangements, the amount of Tikkurila personnel has decreased by 210 employees. The number of employees has decreased in all operating countries. In addition to headcount reductions, Tikkurila will lay off approximately 160 blue-collar workers within production and logistics in Finland for two weeks in stages in late 2018 and early 2019.
In August 2018, Tikkurila estimated that the divestments, closing down of business operations and sites as well as other headcount reductions would lead to a reduction of 500 employees, compared to the end of 2017. Within the framework of the efficiency program, we have so far moved to a more centralized organizational model, discontinued and divested unprofitable business operations, decided to close down certain small production units, begun streamlining and simplifying the product portfolio as well as reduced the headcount.
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Tikkurila is a leading Nordic paint company with expertise that spans decades. We develop premium products and services that provide our customers with quality that will stand the test of time and weather. We operate in around ten countries and our 3,000 dedicated professionals share the joy of building a vivid future through surfaces that make a difference. In 2017, our revenue totaled EUR 582 million. The company is listed on Nasdaq Helsinki. Nordic quality from start to finish since 1862.