Fiskars has unveiled a new leadership team and organizational structure that moves the company from a region-based organization to one that will now operate under two strategic business units: Living and Functional.
Kari Kauniskangas, president and CEO, Fiskars Corporation, said the new structure would allow the company to better connect with consumers while also creating value for company stakeholders.
“Based on our strategy to build global businesses and brands, we are now introducing our plan for a new organizational structure that is better aligned with the strategy and allows us to move faster,” he said.
The Living unit will be led by Ulrik Garde Due, president, and consists of the Scandinavian Living business including Iittala, Rorstrand, Royal Copenhagen and other brands as well as the English & Crystal Living business, including Waterford, Wedgwood, Royal Albert, Royal Doulton and other brands.
The Functional business unit, led by Kauniskangas, would consist of brands including Fiskars, Gerber and Gilmour. The current outdoor business would operate as a part of this business.
In addition, the company’s new leadership team will include Kauniskangas and Garde Due along with Teemu Kangas-Kärki, COO/CFO; and Nina Ariluoma, svp/human resources. The new team will officially be in place January 1.
Company officials also announced plans to reduce positions in areas where there are currently overlaps or to seek efficiencies. Including the addition of a number of new positions, the net reduction of Fiskars’ personnel is estimated to be 130 positions globally. The proposed reductions are expected to take place in 2017 but employees in manufacturing and distribution center operations are not included in the proposed reductions.
“These proposed reductions are aimed to reduce overlaps and strengthen our competitiveness,” said Kauniskangas.
The total costs of the planned program are approximately $16 million in 2016 to 2017, which are planned to be recorded as adjustments to the operating profit. The targeted annual cost savings are approximately $15 million, subject to the full implementation of the program. The targeted cost savings would be achieved gradually, starting next year and with the full effect in 2018, the company said.