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Finnish meat processor HKScan to cut 160 jobs

FBR Staff Writer Published 04 May 2017

Finnish meat processor HKScan said it will cut 160 jobs as part of changes in its operating model.

In the first quarter of this year, HKScan reported net sales of €420.7m, compared to €439.1m in Q1 2016. It also reported a pre-tax loss of €8.2m in Q1 2017.

The decision to cut the jobs comes after a review process which was initiated in February after the Finland-based company saw its revenue decline to €1.87bn in 2016 prompting it to relook at its overall operations.

HKScan said that its new operational model will ensure a better focus on consumers and customers.

The company's new model would also enhance the efficiency and transparency of the food value chain right from farm to fork. Besides, the productivity of internal processes is set to improve by establishing the new operating model.

The meat processing company plans to put the new operating model in force on 1 June.

HKScan President and CEO Jari Latvanen said: “The new strategic direction and operating model will together secure us a sharper focus on consumers and customers. It will also give us the leading role in the food value chain as one, unified company.

“By putting all these measures into effect, we will strive to improve our recipe to being more competitive and consequently more profitable.”

Among the 160 jobs that will be cut, 106 of the employees will be terminated through notice or outsourcing. The remaining 54 will be based on reasons like non-renewal of fixed-term employments and non-filling of positions left vacant by resigned employees.

Image: HKScan corporate headquarters in Turku, Finland. Photo: courtesy of Kreegah/Wikimedia Commons.