Citing a difficult economic situation, Estonia’s state-owned postal service and logistics company Omniva announced on Wednesday that it is about to make 75 jobs redundant in Estonia.
The collective redundancies will affect people in different posts and units, and many of the posts currently vacant will remain unfilled. Most of the changes will take place in the first four months of this year, the company said in a press release.
CEO Mart Magi said that the second half of last year was extremely difficult for logistics companies, as the difficult economic and geopolitical environment led to a decline in parcel volumes and lengthening of the supply chain, which increased costs for Omniva.
“Regardless of external factors, Omniva must continue to be a competitive and efficient company, which is why we need to reduce our costs by at least 2.5 million euros,” the CEO said.
He added that although the Baltic-wide operational model introduced this year and the automation of many work processes will bring greater efficiency, other cost-saving measures also have to be taken. Since operations in Estonia make up a significant part of the group’s results and the largest reductions have taken place in the universal postal service and periodicals, the downsizing will affect jobs in Estonia the most.
“Reducing workforce numbers was the very last option for us, and before making this decision, we conducted a thorough analysis in the company to identify all places for cost-cutting so that we do not have to make people redundant. Unfortunately, these places for cuts were not enough, which is why we have to reduce the number of employees with a heavy heart,” Magi said. “The redundancies do not only affect Estonian employees, but positions at Omniva’s Latvian and Lithuanian units have also been reviewed in the past months and we are making changes in all units.”
All the workers to be made redundant will be supported as much as possible.
“We will be working with the Estonian trade unions and the Unemployment Insurance Fund, and our HR department will support all departing employees in finding new jobs,” the CEO of Omniva added.
Source: BNS
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