Stora Enso long-term profitability plan may lead to 1,000-employee cutback by 2025
Due to the continued weak and uncertain market environment, Stora Enso plans to initiate a new profit improvement program targeting an annual EUR 80-million improvement of operational earnings. This could lead to a potential reduction of approximately 1,000 employees.
The profit improvement program is designed to boost Stora Enso’s long-term competitiveness by focusing on core business activities that can drive the group’s strategy supported by a decentralized operating model. The profit improvement program would be implemented without any new production site closures.
The majority of the savings would materialize during 2025, and the larger part of the employee reductions are planned to take place during the first half of 2024. The employee reductions, efficiency improvements and synergy opportunities would impact all divisions and group functions and reflect the size of their respective organizations.
“Although difficult, this plan is necessary to ensure our long-term success and competitiveness. Last year, we completed a restructuring program which led to the identification of synergy opportunities, which we plan to address with our new profit improvement initiative. We are facing persistent weakness in the macroeconomic and geopolitical environment and need to focus on core business activities which align with our strategy. Through this programme we would strengthen our focus on profitability making us more competitive and resilient to market uncertainties,” says Hans Sohlström, Stora Enso President and CEO.
At the end of last year, Stora Enso completed a restructuring program initiated in June 2023. The program resulted in an annual operational improvement of EUR 110 million and 1,150 employee reductions.