Finnish retailer Stockmann has announced plans to begin codetermination negotiations on the furloughing of staff. The temporary layoffs would last for up to 90 days.
The jobs of a total of about 870 people will be covered by the negotiations, with the financially strained retailer looking to save about three million euros in personnel costs this year.
In a press release, the company said that the talks concern the sales and distribution centre operations of its department store business in Finland. Staff in the customer service and online shopping units would not be affected.
Stockmann said the initiation of negotiations is necessary because of the negative financial impact the prolonged coronavirus pandemic has had on operations.
Earlier this week, Helsinki District Court approved the struggling firm's restructuring plans and sale of real estate properties.
"Pandemic has had a significant impact"
"The coronavirus pandemic has had a significant impact on the business environment of the specialty stores and is also clearly visible in the customer flows of Stockmann department stores," Stockmann's Chief Sales Officer for Finland, Niko Pesonen, said in a statement.
"We are adapting our operations and the personnel resources of our Finnish department stores and distribution centre to the situation," he added.
Talks will begin on Tuesday and are expected to last for up to two weeks, the company said.