27 April 2009

STORA TO CUT 2,000 JOBS

Stora Enso is planning to reorganise its operations with a focus on reducing annual costs by EUR 250 million. Up to 2,000 employees will be affected, mainly as a result of the leaner management structures

“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 organization, 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,” said CEO Jouko Karvinen.

The Helsinki, Finland-based paper producer said the cost reductions are expected to come mainly by reducing top and middle management and by downscaling staff functions and country organisations by one-third.