Fortum Initiates Change Negotiations Amidst Efficiency Program, Anticipating Possible Job Reductions

Fortum Initiates Change Negotiations Amidst Efficiency Program, Anticipating Possible Job Reductions

(IN BRIEF) Fortum’s efficiency program, launched in November 2023, has prompted discussions regarding potential job reductions within the Fortum Consumer Solutions business unit and the IT unit. Approximately 1,080 employees across Finland, Sweden, Norway, and the IT unit in Poland are involved in these change negotiations, with a preliminary estimate suggesting that up to 130 job positions may be affected. The primary goal of this organizational restructuring is to align Fortum with its new structure and operating model while enhancing profitability and long-term competitiveness. The efficiency program aims to gradually reduce annual fixed costs by EUR 100 million by the end of 2025, equivalent to around 10% of the Group’s fixed costs in 2022, and may entail personnel reductions, as previously mentioned during its introduction in November 2023.

(PRESS RELEASE) ESPOO, 26-Jan-2024 — /EuropaWire/ — As part of Fortum’s efficiency programme launched in November 2023, Fortum Consumer Solutions business unit and the IT unit are conducting change negotiations on possible redundancies. In total, the negotiations concern some 1,080 employees in Finland, Sweden, Norway and the IT unit in Poland. According to a preliminary estimate, change negotiations could result in the redundancies of a maximum of 130 job positions.

The objective of reorganising operations is the need to adjust to Fortum’s organisation to reflect the company’s new structure and operating model as well to improve profitability and ensure competitiveness over time.

With its efficiency programme, Fortum targets to reduce its annual fixed costs by EUR 100 million gradually until the end of 2025. The reduction of EUR 100 million corresponds to some 10% of the Group’s fixed costs for the year 2022. The efficiency programme includes strategic prioritisation and assessment of allocated resources as well as turnaround actions for underperforming businesses. As communicated in November 2023 when introducing the efficiency program, reaching the programme’s targets is expected to require personnel reductions.

Fortum 
Fortum is a Nordic energy company. Our purpose is to power a world where people, businesses and nature thrive together. We are one of the cleanest energy producers in Europe and our actions are guided by our ambitious environmental targets. We generate and deliver clean energy reliably and help industries to decarbonise their processes and grow. Our core operations in the Nordics comprise of efficient, CO2-free power generation as well as reliable supply of electricity and district heat to private and business customers. For our ~5 000 employees, we commit to be a safe, and inspiring workplace. Fortum’s share is listed on Nasdaq Helsinki. fortum.com

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SOURCE: Fortum Corporation