MARIMEKKO’S CONSULTATIVE NEGOTIATIONS HAVE ENDED – THE NEW ORGANIZATION FURTHER STRENGTHENS CUSTOMER-CENTRICITY AND OMNICHANNEL APPROACH IN AN INCREASINGLY DIGITAL MARKET

Marimekko Corporation, Press release, 8 October 2020 at 8.45 a.m.

Marimekko’s consultative negotiations in Finland and the corresponding processes in its organizations in Scandinavia, North America and Australia, announced on 13 August 2020, have been completed. The aim of the negotiations and the corresponding processes was to reorganize and streamline the company’s operations to better respond to the structural changes in the fashion and specialty retail sector and the dramatic transformation of consumers’ purchasing behavior, accelerated by the coronavirus pandemic. Through the reorganization and streamlining of cost structure, the company sought to achieve annual savings in costs estimated at around EUR 1.5 million in total.

Following the consultative negotiations as well as the corresponding processes, it was concluded that the reorganization can be achieved with fairly moderate job reductions while attaining total annual cost savings of around EUR 1.3 million. Most of the profit impact of the cost savings will be visible as of the fourth quarter of 2020, when the company will also book a restructuring provision of approximately EUR 0.6 million related to the personnel reductions.

In Finland, the reorganization and streamlining of operations will involve a maximum of 52 jobs and will lead to the termination of at least 20 jobs. According to the company’s estimate, 32 people will be offered a new or a modified job. The reorganization will also affect Marimekko’s organizations in Scandinavia, North America and Australia and will locally lead to the restructuring of some jobs.

"I am deeply sorry that these necessary changes also mean personnel reductions. However, in order to strengthen Marimekko’s future competitiveness and long-term financial position, it is important to make sure that our organization structure, competencies, job contents and working methods best meet the requirements of this new reality,” says Tiina Alahuhta-Kasko, President and CEO of Marimekko.

"Due to the coronavirus pandemic, our industry is facing the worst crisis in decades. Although megatrends such as digitalization have been transforming consumer behavior and the fashion industry for years already, the pandemic has significantly intensified these dynamics. We believe that our new, even more customer-centric organization based on omnichannel thinking will strengthen our competitiveness in this transforming market and thus help us to agilely seize future growth opportunities as the international appeal of the Marimekko brand grows,” Alahuhta-Kasko continues.

Marimekko will provide support for all those losing their jobs, introducing them to alternative paths to re-employment.

In addition to the now-concluded consultative negotiations and other corresponding processes, Marimekko has, due to the coronavirus pandemic, been making personnel adjustments in its retail sales organization since spring.


Further information:
Tiina Alahuhta-Kasko, President and CEO, tel. +358 9 758 71

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About Marimekko
Marimekko is a Finnish lifestyle design company renowned for its original prints and colors. The company’s product portfolio includes high-quality clothing, bags and accessories as well as home décor items ranging from textiles to tableware. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. Marimekko products are sold in about 40 countries. In 2019, brand sales of the products worldwide amounted to EUR 251 million and the company's net sales were EUR 125 million. Roughly 150 Marimekko stores serve customers around the globe. The key markets are Northern Europe, North America and the Asia-Pacific region. The Group employs about 450 people. The company’s share is quoted on Nasdaq Helsinki Ltd. www.marimekko.com