Marimekko - Company Announcement

MARIMEKKO IS PLANNING TO STREAMLINE ITS OPERATIONS

Marimekko Corporation, Stock Exchange Release 14 January 2016 at 9.00 a.m.

MARIMEKKO IS PLANNING TO STREAMLINE ITS OPERATIONS


The long-term uncertainty over the global economy and the difficult situation
in the retail trade in Finland have impacted on consumer spending behaviour in
Marimekko’s main market areas. This has created a need to enhance the company’s
profitability. As part of measures to improve profitability, Marimekko is
planning to streamline its operations and cost structure, which is estimated to
result in the elimination of a maximum of 55 jobs in Finland. All of the
company’s fixed costs will also be scrutinised. 

“Marimekko will continue its international growth strategy, which is especially
important in particular because our domestic market has deteriorated. Currently
our cost structure is burdening our competitiveness and profitability.
Therefore, we have to streamline and reorganise our operations in order to
ensure processes and procedures that are cost-efficient and appropriate for an
international company. The changes brought about by digitalisation in our
sector also make it necessary to assess the suitability of our current
operating model. As part of a comprehensive cost review, we will unfortunately
have to initiate consultative negotiations,” says Tiina Alahuhta-Kasko,
President. 

The consultative negotiations will include all operations in Finland with the
exception of the personnel in company-owned retail stores. If realised, the
planned actions will lead to downsizing the company’s different functions at
its Herttoniemi headquarters and factory in Finland. If implemented to its full
extent, the reorganisation can yield annual savings in costs estimated at
roughly 2.4 million euros and an improvement in operating result. 

Apart from possible job reductions, the negotiations will also consider
possible changes to job descriptions, working methods and the organisation of
work, which would have a significant effect on the position of employees, as
well as possible outsourcing of some functions. 

At the end of September 2015, Marimekko had 444 employees, 330 of whom worked
in Finland. 



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



MARIMEKKO CORPORATION
Corporate Communications

Asta Halme
Tel. +358 9 7587 233
asta.halme@marimekko.com



DISTRIBUTION:
NASDAQ Helsinki Ltd
Key media



Marimekko is a Finnish design company renowned for its original prints and
colours. 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 2014, brand sales of the products worldwide amounted to EUR 187 million and
the company's net sales were EUR 94 million. More than 140 Marimekko stores
serve customers around the globe. The key markets are Northern Europe, North
America and the Asia-Pacific region. The Group employs about 500 people. The
company’s share is quoted on NASDAQ Helsinki Ltd. www.marimekko.com