Stora Enso Oyj (SEOAY.PK) said Tuesday that it has concluded second phase of planning 200 million euros streamlining and structure simplification programme announced on 23 April 2013.
The company stated that the potential 200 million euros annual Group fixed cost reduction from actual costs in year 2012 to second quarter 2014 run rate will include the earlier announced 30 million euros streamlining of the Building and Living Business Area. All plans are subject to co-determination negotiations in the local units.
The company said that the 200 million euros plans do not include any capacity reduction actions. In addition to the 200 million euros, the effect of previously announced cost and capacity reduction actions between 2012 and the second quarter of 2014 will be 75 million euros per year.
According to preliminary estimates, the plans could reduce the total number of employees by approximately 2500, depending on the outcome of the co-determination negotiations and processes. The plans could reduce 650 jobs in Finland, 750 jobs in Sweden, 850 jobs in Europe excluding Nordic countries, and 250 jobs in Outside Europe.
The company said that the one-time costs will be recorded as non-recurring items mainly during the second and third quarters of 2013.
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