Efficiency programme and measures
The efficiency programme that was launched in autumn 2011 sought cost savings of EUR 50 million as of 2014, mainly in the business operations in Finland. The efficiency programme sought to improve procurement efficiency, lighten administrative structures and develop operational efficiency. The number of employees was reduced by 300. By the end of 2013, the efficiency programme had identified the cost savings pursued. However, the procurement gains were not fully realised in the company’s result due to intensified competition.
In August 2013, Lemminkäinen announced a new efficiency programme, the goal of which is to cut the cost structure by EUR 30 million. In order to decrease the impact of seasonality, Lemminkäinen will increase the use of subcontracting and outsourcing. The company will also conclude measures to reduce the number of regional units in Finland and Norway. As part of the efficiency improvement measures, the company started personnel negotiations to cut approximately 500 man-years.
The full impact of the efficiency improvement measures is expected to materialise by the end of 2014. By the end of 2013, the personnel had been reduced by approximately 360 man-years and 24 regional units or sites had been closed.