Itella could axe 70 jobs in Danish-Swedish logistics unit

Finland’s Itella Group has announced plans to cut 70 jobs within its Swedish and Danish logistics operations. The postal and logistics company has been reviewing its growth strategy to weed out “risky” investments, having last week recorded a EUR 16.4m loss for the 2011 year.

Preliminary plans for restructuring in the logistics unit within Sweden and Denmark call for a “possible” headcount reduction and operational restructuring.

The company has 255 staff based in Denmark, in Hivdovre, Kolding and Risskov, as well as 155 employees in Sweden, in Stockholm, Borås, Malmö and Jönköping.

Itella said today that there were still big opportunities for its logistics operations in Sweden and Denmark, but explained that there were synergy opportunities made possible by last October’s combination of Itella Logistics Sweden and Denmark.

The managing director of Itella Logistics Sweden and Denmark, Jørn Johansen, said: “Only by taking the planned actions can we be a competitive partner for our customers in the future.

“However, Itella Logistics sees the significant value and opportunity in operating in Denmark and Sweden. Both countries will remain strategically important to Itella Logistics.”

Itella is in the middle of a EUR 100m cost-cutting campaign, launched last August for a three-year period. As well as operations in Sweden and Denmark, the company is also currently reviewing its operations in Germany and its expansion into Russia.

The company, which employs 7,100 people with 30 offices in eight countries, achieved a EUR 1.9bn turnover in 2011.