October 22, 2019


HKScan plans renewal of group-wide operating model


HKScan is planning to renew its group-wide operating model and is launching related processes.


At the same time, the Nordic meat and food company is evaluating the need to improve its operational efficiency in Finland. The planned operating model renewal is not expected to lead to a headcount reduction in any of the company's market areas outside Finland.


Plans regarding HKScan's new operating model and related partial organisational change will be reviewed in statutory negotiations in Finland and Sweden as well as in other preparation processes that will be implemented in line with each other country's legislation and practices.


The plans related to the new operating model cover HKScan's personnel in all operating countries, excluding blue-collar employees. The planned operating model renewal would mainly target changes in the white-collar employee reporting lines, which is not expected to have a major impact on the group's number of employees or employment terms. It is estimated that the planned operating model renewal can possibly lead to headcount reductions or material changes in employment contracts only in Finland.


"The planned operating model renewal will play a key role in the three-year turnaround programme launched last spring and in implementing the new strategy currently under development. The goal of the operating model renewal is to strengthen the company's market area-level profit responsibility and management. We are also pursuing clearer ways of working and a strong customer- and consumer-driven way of operating. According to the plan, the group-level synergies will be leveraged also in the future," said HKScan's CEO, Tero Hemmilä.


HKScan is also planning efficiency measures in Finland. The planned efficiency measures may impact the number of employees and their employment terms.


The planned operating model renewal and the efficiency measures are preliminarily estimated to lead to the termination of maximum 25 employment contracts. It is estimated that the changes will mainly target Rauma poultry plant's white-collars, senior white-collars and management.


HKScan is also reviewing the possibility of adjustments in the number of white-collar and blue-collar employees in the Outokumpu and Paimio units through temporary layoffs next year.


The company's goal is to implement possible measures immediately upon conclusion of the statutory negotiations, by the end of 2019 at the latest.


- HKScan