Cost reduction programme with positive result effects of SEK 600 million with full effect 2021
BillerudKorsnäs introduces a cost reduction programme to ensure long-term efficiency and profitability. The measures include staff cuts in mainly administration, purchasing-related savings and efficiency improvements throughout the business.
As a part of a strategic update, BillerudKorsnäs is introducing a cost reduction programme expected to generate positive effects on earnings of around SEK 600 million with lasting effects beginning in 2021. The positive effects in 2020 are expected to amount to approximately SEK 250 million. As part of the programme, BillerudKorsnäs has decided to reduce the number of employees by up to 300. This decision affects the entire operation and negotiations with the trade unions will begin shortly.
“There is considerable potential to increase our cost efficiency within BillerudKorsnäs. We are a well-positioned, fundamentally stable company that continuously improves our operational efficiency. This programme will ensure long-term efficiency and profitability,” says Petra Einarsson, CEO and President of BillerudKorsnäs.
In addition to increasing the efficiency of the business operations, the updated strategy also involves BillerudKorsnäs accelerating its innovation and repositioning solutions. The strategy focuses on clearer priorities and concrete initiatives that enable strong execution with the aim of continuing to challenge conventional packaging for a sustainable future.
For further information, please contact:
Ivar Vatne, CFO, +46 8 553 335 07
Lena Schattauer, Head of Investor Relations, +46 8 553 335 10
This information constituted inside information prior to publication. This is information that BillerudKorsnäs AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08:45 CET on 16 September 2019.
BillerudKorsnäs provides packaging materials and solutions that challenge conventional packaging for a sustainable future. We are a world leading provider of primary fibre based packaging materials and have customers in over 100 countries. The company has 8 production units, in Sweden, Finland and the UK, and about 4,500 employees in over 13 countries. BillerudKorsnäs has an annual turnover of approximately SEK 24 billion and is listed on Nasdaq Stockholm. www.billerudkorsnas.com