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Stockmann cuts jobs, consolidates and automates Finnish-Baltic businesses

The department store chain Stockmann plans to reorganise its warehouse system, with a loss of some 250 jobs within the next two years.

Stockmannin tavaratalo Helsingissä.
Image: Touko Yrttimaa / Yle

Up to 200 people will be made redundant in Finland as Stockmann centralises its operations at a new environmentally-certified distribution centre in Tuusula, some 30 km north of Helsinki. The new system will replace some workers with machines. Although the automation technology provider has not yet been chosen, the company estimates that it will lower costs by some 6.5 million euros annually beginning in 2018.

The other 50 job cuts will be in Latvia. Distribution in the Baltic countries will be handled from Tuusula as of 2017. Stockmann has nine department stores in Finland and the Baltic countries, as well as seven in Russia.

Established by a German immigrant in Helsinki in 1862, the company also owns the Academic Bookstore, Seppälä and Lindex chains as well as the Hobby Hall mail-order business.