Type
Internal restructuring
Country
Sweden
Region
Norra Mellansverige; Värmlands län;
Location of affected unit(s)
Karlstad
Sector
Manufacturing
Manufacture Of Food And Beverage
Manufacture Of Food Products
10 - Manufacture of food products

137 jobs
Number of planned job losses
Job loss
Announcement Date
11 March 2016
Employment effect (start)
Foreseen end date

Description

Swedish co-operative Konsum Värmland is to cut 170 jobs at its headquarters and production facilities in Karlstad following negative results and diminishing turnover. In total 339 individuals work at the headquarters and production facilities. Employees in Konsum Värmland's supermarkets are unaffected by the internal restructuring. 

Food manufacturer Coop Sweden will handle warehouse, logistics, transport and administrative activities for Konsum Värmland which is anticipated to in turn provide synergy effects valued to SEK 39 million (€4.2 million) yearly.

Update 15/4/2016:The official decision regarding lay-offs were taken on the 6th of April. In total 160 jobs will be cut at the distribution centre in Orrholmen, Karlstad. The remaining 10 jobs to be cut will be cut within the administration.

Update 16/9 2016: Final employer-employee negotiations were concluded on the 8th of September and it was concluded that 137 jobs will be made redundant. In total 43 white collar and 94 blue collar employees will be made redundant. Konsum Värmland has a total of 3,400 employees and currently 339 work at the production facilities in Orrholmen, Karlstad.


Sources

  • 11 March 2016: Nya Wermlands Tidning
  • 7 April 2016: Länstidningen Södertälje
  • 8 September 2016: Dagens Industri

Citation

Eurofound (2016), Konsum Värmland, Internal restructuring in Sweden, factsheet number 86726, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/86726.