As of February 1, 2024, Stora Enso Oyj has announced plans to implement a new profit improvement program in response to the ongoing weak and uncertain market environment. This program will target an annualized improvement of EUR 80 million of operational EBIT, and may lead to a reduction of approximately 1,000 employees. Change negotiations will be initiated in accordance with local regulations, once country-specific plans are further detailed.
The primary objective of the profit improvement program is to enhance Stora Enso’s long-term competitiveness by focusing on core business activities. This will be supported by the Group’s strategy and a decentralized operating model. The program will be implemented without any new production site closures.
The majority of the savings from this program are expected to materialize in 2025, and a significant portion of the employee reductions are planned to take place in the first half of 2024. The impact of the employee reductions, efficiency improvements, and synergy opportunities will be felt across all divisions and Group functions.
Stora Enso’s President and CEO, Hans Sohlström, expressed the necessity of this plan to ensure long-term success and competitiveness. “Although difficult, this plan is necessary to ensure our long-term success and competitiveness. Last year, we completed a restructuring programme 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,” Sohlström stated.
No decisions regarding the planned employee reductions will be made until the change negotiations have been concluded according to local regulations.
At the end of last year, Stora Enso completed a restructuring program that resulted in an annual operational EBIT improvement of EUR 110 million and 1,150 employee reductions.
For further information, please contact:
Carl Norell
SVP Corporate Communications
tel. +46 72 241 0349
Investor inquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691
Stora Enso is a leading provider of renewable products in packaging, biomaterials, and wooden construction, and is one of the largest private forest owners in the world. The company has approximately 21,000 employees and had sales of EUR 11.7 billion in 2022. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in the USA as ADRs and ordinary shares (SEOAY, SEOFF, SEOJF). For more information, visit storaenso.com/investors.
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