Marimekko - Company Announcement

MARIMEKKO’S CONSULTATIVE NEGOTIATIONS HAVE ENDED - CHANGES ALSO IN MARIMEKKO’S MANAGEMENT

Marimekko Corporation, Stock Exchange Release 15 March 2016 at 8.30 a.m.

MARIMEKKO’S CONSULTATIVE NEGOTIATIONS HAVE ENDED - CHANGES ALSO IN MARIMEKKO’S
MANAGEMENT 

The consultative negotiations started at Marimekko Corporation in January 2016
have been concluded. The negotiations related to streamlining the company’s
operations included all operations in Finland with the exception of the
personnel in company-owned retail stores. When the negotiations started, the
permanent overall need for downsizing was estimated at a maximum of 55 jobs.
The aim of reorganising operations and implementing other measures was to yield
annual cost savings estimated at approximately EUR 2.4 million and an
improvement in operating result, if job reductions would be implemented in
full. 

However, the negotiations reached a conclusion that operations can be
streamlined with fewer job terminations than estimated. The streamlining and
reorganisation of operations as well as outsourcing will concern a maximum of
55 jobs of which a minimum of 35 will lead to termination. According to the
company’s estimate, 15 persons will be offered a new job and in addition about
5 jobs will be discontinued due to other internal arrangements. The impacts of
the implemented organisational change are also reflected to the company’s
foreign subsidiaries and will lead to some local organisational restructuring. 

Annual savings from streamlining operations and above-mentioned reorganisations
will be approximately EUR 2.1 million. The majority of the profit improvement
resulting from the cost savings will be visible as of the second quarter of
2016. In connection with the downsizing, the company will post a restructuring
provision of approximately EUR 0.8 million for the first quarter of 2016. 

“These organisational changes and other implemented measures are aimed at
strengthening our company’s competitiveness and profitability as well as
ensuring cost-efficient processes and procedures appropriate for an
international company. The new organisational model supports our ability to
meet the needs of our global customer base even better and in a more agile way
in the fast-changing operating environment revolutionised by digitalisation. We
are looking for a long-term improvement in profitability also by enhancing
efficiency in supply chain and optimising assortments to different markets and
channels,” says Marimekko’s President Tiina Alahuhta-Kasko. 

”It is very unfortunate that these changes translate to personnel reductions.
However, we were able to do the necessary streamlining measures and
reorganization with fewer personnel reductions than estimated,” President Tiina
Alahuhta-Kasko continues. 

Marimekko will support re-employment of those losing their jobs, for instance
by offering training for job-seeking. 

Changes in Marimekko’s management

As a part of streamlining the operations, Marimekko’s Chief Product Officer
(CPO) Niina Nenonen resigns her membership of the company’s Management Group as
of 15 March 2016 and continues with the company as a Head of Global Partner
Sales responsible for the strategically important partner markets especially
focused in Asia. She will report to Marimekko’s Chief Sales Officer. The
company will initiate a recruitment process for Chief Supply Chain Officer who
will be responsible for the supply chain. The target is to develop the
efficiency of the company’s production, sourcing, and logistics while taking
care of Marimekko’s coherent quality level and corporate responsibility
reflecting the company’s values. The person to be recruited will be a member of
Marimekko’s Management Group. During the recruitment process, President Tiina
Alahuhta-Kasko will cover the duties of Chief Supply Chain Officer. 


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 2015, brand sales of the products worldwide amounted to EUR 186 million and
the company's net sales were approximately EUR 96 million. More than 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 500
people. The company’s share is quoted on Nasdaq Helsinki Ltd. www.marimekko.com