EMCC European Monitoring Centre on Change

Trainers House

Company/Organisation:
Trainers House

Geographic Location

Country: Finland
Region: Manner-Suomi

Company

Sector: Professional services
Legal, accounting, management, architecture, engineering, technical testing and analysis activities
70.2 - Management consultancy activities
Number Employed: 300

Employment Effects

Announcement Date: 24-02-2009
Planned Job Reductions min: 85
Planned Job Reductions max: 85
Type of Restructuring: Internal restructuring
Direct Dismissals: 85

Additional Information

The marketing and communications company Trainer's House has completed personnel negotiations and is cutting 81 jobs in its units in Finland. In addition, Trainer's House is cutting total of 4 jobs from its loss-making international operations in Dusseldorf, Stockholm and St. Petersburg. Originally planned job reductions were some 120 jobs.

In the weakening economic cycle Trainers' House accelerates the execution of the chosen company strategy by substantially transforming its business structure. The company withdraws from high price pressured, loss-making subcontracting work, as it yields immeasurable, non-business critical value to its customers.

The negotiations with all personnel groups is a result of the transformation program and related restructurings. The more detailed scope of personnel reductions, as well as other possible cost savings measures, will be specified during the negotiations.

As a part of the transformation program, the company has decided to pull out from its loss-making international operations in Dusseldorf, Stockholm and St. Petersburg. The termination of the operations in Germany results into a one off EUR 0.8 million goodwill write down in bookkeeping.

Net sales and operating profit for the existing year are estimated to be lower than in the previous year due to the transformation and restructuring program. The company aims for EUR 9 million annual savings resulting from transformation and restructuring. The estimated costs of the transformation and restructuring will be booked as provisions in the first quarter's reporting. This will result the ongoing quarter to be loss making.

Trainer's House employs some 300 employees in Finland after the restucturing.