Sanoma Corporation, Press Release, 4 September 2012 at 12:35 CET+1

Sanoma Magazines Finland and Sanoma Kaupunkilehdet have today initiated separate co-operation procedures to reorganise their operations and streamline cost structures. The moves are a part of a process for the entire Sanoma Group which aims to accelerate the internal transformation in a rapidly changing operating environment.

Sanoma Magazines Finland, the leading Finnish magazine publisher, is planning to reorganise its operations. The co-operation negotiations concern the entire personnel of Sanoma Magazines Finland Oy and Sanoma Tekniikkajulkaisut Oy. The need for reduction is estimated to be at most 95 persons. The total number of personnel affected by the negotiations is 811.

“The change in our operating environment is challenging the traditional income streams of magazines, and hence our current operating models. We are now looking for a new, stable foundation for Sanoma Magazines, one that continues to be based on high-quality content, strong knowledge of target groups and well-known media brands, but also on increasingly multi-channel products and services,” says Clarisse Berggårdh, Managing Director of Sanoma Magazines Finland.

For Sanoma Kaupunkilehdet, changes are being considered in the product range and organisational structure.  The planned actions include the discontinuation of the Helsinki metropolitan area edition of the Vartti free sheet at the end of the year. The co-operation procedures initiated today concern 69 persons at Sanoma Kaupunkilehdet in the Helsinki region. The need for reduction is estimated to be at most 45 persons.

“Regrettably, the Helsinki region’s Vartti edition has not lived up to expectations. We will increasingly focus on developing the Metro free sheet and the local online service for the Helsinki metropolitan area,” says Pekka Soini, CEO of Sanoma News.

Previously, Sanoma News’ structural savings programme has been announced in the context of the overall Sanoma Group transformation process. Similar programmes are also in progress in other Sanoma units and countries. Our target is to be in the forefront of the market development and secure our good performance and profitability in a changing and digitalising operating environment, said Harri-Pekka Kaukonen, President and CEO of Sanoma, in a release on 16 August 2012.

Additional information:

Sanoma Magazines Finland:
Anu Nissinen, CEO, Sanoma Media Finland, tel. +358 10 707 1111
Clarisse Berggårdh, CEO, Sanoma Magazines Finland, tel. +358 9 120 5020

Sanoma Kaupunkilehdet:
Pekka Soini, CEO, Sanoma News, tel. +358 9 122 2000
Titta Halme, Business Director, Sanoma Kaupunkilehdet, tel. +358 9 122 4380

Sanoma inspires, informs and connects. Sanoma is a leading European group with a focus on consumer media and learning. We bring information, experiences, education and entertainment to millions of people every day. We employ nearly 11,000 professionals in some 20 countries. In 2011, the Group’s restated net sales totalled EUR 2.4 billion. Sanoma shares are listed on the NASDAQ OMX Helsinki.