The Finnish electronics and home appliances retailer Verkkokauppa.com issued a profit warning on Monday, noting that sales were not reaching previous expectations.
The firm also said it has initiated codetermination talks, noting a downturn in demand for consumer products caused by the recent economic slump.
Verkkokauppa's entire 770-member staff will be included in the negotiations between the company and employee representatives, with redundancies or changes to contractual hours likely to affect about 110 employees.
In its profit warning, the company noted that consumer credit has weakened significantly since last spring while a prevailing economic environment of record-low consumer confidence. It also noted that ballooning inflation and rising interest rates have taken a further toll on consumers' purchasing power.
The company said it is aiming to make annual savings of six million euros in personnel costs, while its target for overall profit improvement is 10 million euros per year.
"Since the beginning of its history, Verkkokauppa.com has been trying to grow. The current challenging market environment does not provide the conditions for growth, while increased costs are undermining our profitability. With the measures we are taking now, we want to ensure the company's future profitability," the company's CEO Panu Porkka said in a press release.
He added that the company has already introduced a number of measures aimed at improving profitability.
"In addition to the measures already taken, the planned restructuring is necessary to improve competitiveness, increase staff flexibility and reduce fixed costs," Porkka said.
Verkkokauppa's statement on Monday revealed that net sales for the fourth quarter 2022 amounted to 155 million euros while comparable operating profit stood at 0.7 million euros. The accounts for 2022 will be published on 9 February.
Would you like a roundup of the week's top stories in your inbox every Thursday? Then sign up to receive our weekly email.