Architecture and planning company Martela Group, on Wednesday, said it will lay off about 6% of jobs to restructure its work operations due to challenging market situations leading to weakening its business volume and profitability.
The firm said this planned action aims to improve the service experience of Martela’s customers as well as to mitigate the negative effects caused by the market situation and to adapt the cost structure to reflect the prevailing conditions.
The Finland-based firm said according to the preliminary estimate, organizational changes will lead to a reduction of approximately 25 job positions (6.3% of the employment). The changes will be implemented in all of Martela’s operating countries and their personnel, except the company’s production employees.
The company had an overall headcount of 400 employees with a majority of employees from Finland, based on the annual report of 2022.
The organizational changes and other activities are estimated to generate an annual cost savings of about 2 million euros, said Martela. Additionally, the company will continue its investments in areas of work environment services, digitalization, circular economy, and international sales.
A week ago, the firm cut its annual revenue forecast due to weakening demand for interior designs and orders resulting from fear of economic recession and decades-high inflation levels.
The company now projects its 2023 revenue to fall by about 9% to 13% from its prior forecast of a slight decrease.
“Martela’s profit development has not been satisfactory, and the market situation in the industry has been challenging, as a result, the restructuring and personnel adjustments planned now are necessary to ensure our competitiveness and to reduce our cost structure”, said Ville Taipale, executive chief of Martela Group.
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