The rationalisation negotiations related to the enhancement of Kesko Food's operations. At the same time, Kesko Food and K-Plus Oy, which is responsible for the K-Alliance's customer loyalty system, will intensify their co-operation. The objective of the arrangements is to improve the competitiveness of the K-food stores. The negotiations concerned Kesko Food and K-Plus Oy on a large scale and at the beginning it was estimated that some 160 jobs would have to be reduced.
Kesko Food and K-Plus will support the persons to be dismissed by providing training aimed at re-employment and by continuing an active search for reassignment opportunities within the Kesko Group.
Kesko Food will enhance its operations by reorganising for instance marketing, logistics and purchasing of home and speciality goods for the K-citymarket chain. At the same time, Kesko Food and K-Plus Oy will intensify their co-operation in providing support services for the chains. The new organisation will take effect on 1 June 2005. The improvement actions and personnel reductions are estimated to generate 20 million euros in annual savings.
Further information:
Kesko Food's President Terho Kalliokoski, tel. +358 1053 22204
Kesko Food's Executive Vice President Harri Sivula, tel. +358 1053 22213
Kesko Food's President Terho Kalliokoski, tel. +358 1053 22204
Kesko Food's Executive Vice President Harri Sivula, tel. +358 1053 22213
Kesko Corporation
Anne Leppälä-Nilsson
General Counsel
General Counsel
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Helsinki Stock Exchange
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Helsinki Stock Exchange
Main news media