Oriola Corporation stock exchange release 30 September 2019 at 9 a.m.
Oriola Corporation cooperation negotiations completed
Oriola Corporation has ended the cooperation negotiations that were announced on 19 June 2019. As a result of restructuring, Oriola will reduce in total 83 positions. The headcount reduction will be implemented mainly by terminating both fixed-term and permanent employment contracts. Approximately one fourth of employees in positions that will be terminated, will be relocated to other vacant positions within the company, mainly in the pharmacy network in Sweden. Oriola will provide support for those affected by the restructuring.
The estimated annual cost savings will be approximately 4.5 million euros in personnel costs. The savings are expected to materialise in stages starting from the fourth quarter of 2019, gradually taking full effect in 2020. The non-recurring costs related to personnel reductions are estimated to be approximately 1.6 million euros and will be booked to third quarter 2019 result.
During the process, the pharmacy network in Sweden has been reviewed and 9 pharmacies will be closed by the end of the first quarter of 2020. The non-recurring costs related to closures are estimated to be approximately 3.9 million euros and will be booked to third quarter 2019 result.
The restructuring is part of the company’s 20by20 Excellence programme that was announced in February 2019. The programme’s target is to deliver 20 million euro annualised savings compared to 2018 cost level. Savings are expected to materialise with full effect by the end of 2020.
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