HKScan to introduce new operating model

Set to come into effect on 1 January 2020, the new model is described as “an integral part of the company’s turnaround programme and its accountable implementation as well as the new strategy”.

HKScan completed the country-specific preparation processes initiated in October concerning the new Group-wide operating model. The negotiations were conducted in accordance with the local legislation and practices of each country.

In line with its new operating model, HKScan will move from a ‘matrix organisation’ to country-based business unit level P&L management where Finland, Sweden, the Baltics and Denmark form the reporting units. The key group-wide functions will continue to play an essential role in ensuring business synergies and good governance. The company's management structure has been amended to reflect these changes (see box below).

In all HKScan’s operating countries, the operating model renewal mainly concerns the changes in reporting lines of white-collar employees and will have no material impact on the number of the Group’s employees or employment terms.

CEO Tero Hemmilä said: “The renewal of the Group-level operating model has a central role in the implementation of the three-year turnaround programme launched last spring and the Group's new strategy published in November. The renewal strengthens and clarifies market-area level profit responsibility and day-to-day management. With the renewal, we also aim to reinforce our customer- and consumer-driven way of operating.”

Job losses in Finland

HKScan has also announced plans to streamline its operations in Finland. As a result of this, a total of eight employees in the Finnish operations will lose their jobs. HKScan said most of the personnel impacts estimated at the beginning of the negotiations will be addressed through reorganization of tasks. In addition, the number of employees of the beef units in Outokumpu and Paimio will be adjusted to the market situation through temporary layoffs at dates specified in 2020.