Martela continues the cost efficiency improvements started in 2018 in order to improve its profitability. Target for the cost efficiency program is to reach EUR 4 million annual savings. Purpose of the planned actions is to align company’s cost base to meet current market conditions and to secure set profitability targets. In addition to decrease fixed costs, company is also investigating other alternatives to change cost base to be more flexible. Planned savings will start to materialize gradually from the beginning of 2020 and will have full impact by the first quarter of 2021.
As a part of the cost savings program Martela will initiate co-operation negotiations to adjust its personnel. The planned action can lead to the maximum reduction of 50 persons and/or to the lay-offs of personnel for a maximum of 90 days. The planned personnel related actions will start in 2019 and are to be concluded during 2020. The planned personnel adjustments concerns Group companies in Finland except subsidiary Kidex Oy.
“Development in our operating result has not been on a satisfactory level and it is not foreseeable that there would be any significant changes in the toughened competition. Actions done last year to streamline internal processes and further centralize support functions to Finland were not enough to compensate the impact of decreased margins. Aligning the cost structure to meet the current market situation and to secure future business needs and competiveness is inevitable. At the same time we will continue to invest to offer even higher quality Martela Lifecycle solutions” says CEO Matti Rantaniemi.
The Martela Group employees approximately 430 people in Finland.
Matti Rantaniemi, CEO, tel. +358 50 465 8194
Kalle Lehtonen, CFO, tel. +358 400 539 968
Nasdaq OMX Helsinki
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Our strategic direction is defined by our mission “Better working” and our vision “People-centric workplaces”. Martela supplies user-centric workplaces where the users and their wellbeing are what matter most. We focus on the Nordic countries because, based on our common open work culture and needs, the Nordic countries are leaders in hybrid workplaces.