HKScan completes cost-saving review

By Aidan Fortune contact

- Last updated on GMT

HKScan completes cost-saving review

Related tags: Pork, Beef, Poultry, Lamb

Finnish processor HKScan has completed its company-wide review designed to save €10m across the business.

Announced in February 2019​ following some poor financial results, HKScan started statutory negotiations that affected all white-collar employees and management in all operating countries, as part of a programme to boost operational efficiency. When announced, around 220 jobs were expected to be cut. At the time, CEO Tero Hemmilä explained the review:

“During the recent years, HKScan’s competitiveness has been continuously weakening,”​ he said. “Our current approach isn’t reflecting, from neither an agility nor a cost competitiveness point of view, the market needs.”

Some of the less than stellar results stemmed from delays related to HKScan’s Rauma unit launch.

Three months on, HKScan has now completed country-specific reviews in all markets, with “negotiations following the legal requirements of each country”​.

In total, HKScan reduced its headcount by 183 employees in all markets, including the Swedish headcount reduction of 69. The headcount reduction will be implemented by terminating fixed-term and permanent employment relationships and through retirement arrangements.

With the implemented measures, HKScan aims to achieve group-wide annual savings totalling €10m. The savings are expected to materialise on a phased basis starting in the fourth quarter of 2019 and take full effect at the beginning of 2020.

Our resolute focus is on strengthening our financial situation. As a result of the Group-wide negotiations, the roles and responsibilities in the organization will be clarified and cost competitiveness will be improved. We will utilize the ideas received from our employees to improve our operations in the future,”​ said Hemmilä.

Related topics: Financial, Others, Sweden, Lamb, Poultry, Pork, Beef

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