Jobs to go at Lemminkäinen

Troubled Finnish contractor Lemminkäinen is to cut up to 265 personnel as part of its Deliver 2014 programme, which aims to save the company €30 million in fixed costs.

Lemminkäinen announced ‘unsatisfactory’ financial results for 2013 and is now looking at cutting costs across the board.

A maximum of 265 full-time equivalents will be cut from its operations in Finland. Further cost-cutting measures include the closure of its building construction offices in Kokkola and Kouvola.

Lemminkäinen also plans to cut or re-evaluate some of the group’s IT and other development projects, sell non-core assets and operations, lighten its support functions, and cut back other fixed costs that are not critical to business operations. The savings target for 2014 is €10 million.

Interim president and CEO Berndt Brunow said, “The Deliver 2014 programme will lighten our cost structure and improve our operational efficiency in a challenging operating environment. As difficult as some of these decisions have been, they will significantly improve Lemminkäinen’s competitiveness The company’s renewal will continue.”