Martela plans to streamline and reorganise operations

Martela Corporation, insider information, 3.1.2024, at 8:00 a.m.

The market situation has been challenging and significantly affected Martela's operating environment, weakening the company's business volume and profitability.
For the reasons mentioned above, Martela is planning to streamline and reorganize its operations. Actions are taken in order to mitigate the negative effects caused by the market situation and to adapt cost structure to reflect the prevailing conditions. The reorganisation also aims to improve the service experience of Martela's customers.

The planned organisational changes and other activities are estimated to generate annual cost savings of approximately 2 million euros. Most of these are expected to be realised already during 2024 and the savings would be actualised in full within the year 2025. At the same time, the company continues its investments in strategic key areas in work environment services, digitalisation, circular economy and international sales.

According to a preliminary estimate, the planned organisational changes will lead to a reduction of approximately 25 job positions. The planned actions apply to all of Martela group's operating countries and their personnel, with the exception of the company's production employees. Martela negotiates the changes in close interaction with personnel and personnel representatives. Negotiation processes and their dates vary from country to country.

"Martela's profit development has not been satisfactory, and the market situation in the industry has been challenging. As a result, the restructuring and personnel adjustments planned now are necessary to ensure our competitiveness and to reduce our cost structure.

At the same time, we strengthen our role in the frontline of best working environments. We help our customers to improve their employee experience, working efficiency, innovativeness and to decrease the total costs of their workspaces sustainably.

Changes in the ways of working are reflected to work environments, and the demand for flexibility and better employee experience is increasing rapidly.

We respond to this market change with our flexible Workplace as a service -model, which we continue to develop. In addition, the demand for circular services, with which we have long experience, has grown strongly. We have also achieved our 2023 goals in the digitalisation of business, and taking this further also in coming years. These will have a positive effect on the development of our business," says CEO Ville Taipale.

Martela Group employes approximately 400 people.

Martela Oyj

Ville Taipale  
CEO

Further information:
CEO, Ville Taipale, tel. +358 50 557 2611
VP, People & Sustainability, Suvi-Maarit Kario, tel. +358 40 356 4618
CFO, Henri Berg, tel. +358 40 836 5464

Our updated vision "We create the best places to work" emphasises the constantly changing ways of working and the diversity of work environments, from offices to home offices and other places where work is done. Our strategy "We support our customers' business with Martela Lifecycle solutions" combines furniture and related services into a seamless whole.

Distribution:
NASDAQ Helsinki
Main news media
www.martela.com