An extensive survey with the aim of rationalising the administration and support functions has been conducted within the Group this autumn. The targets of the project have been the Group's joint administration and support functions as well as the administration and support functions within banking, long-term saving and P&C insurance. The project has defined, among other things, the functionality and organisation of the processes, overlaps and the cost structure. Simultaneously, other organisational structures and product processes have been scrutinised. For example, within P&C insurance, the combining of two main organisations and the rationalisation of support functions within customer services have been launched.
The reduction in the number of staff according to the proposal is based on the production effects that have emerged through the aforementioned project. Certain administrative and supporting tasks will become redundant and the number of staff will be adjusted to answer to the current structure and model of operations of the Sampo Group. The annual staff expense savings as a result of the rationalisation will be approx. EUR 32 million and the operational savings will amount to approx. EUR 20 million.
The staff reduction is intended to be carried out during the year 2002 mainly through other measures than dismissals. According to the proposal, the adjustment process will involve, prior to dismissals, the incorporation and outsourcing of operations, re-training of staff for customer services and sales assignments, pension solutions as well as the offering of voluntary support packages to those employees who will be left without work.
Head of Group Communications
FOR FURTHER INFORMATION, PLEASE CONTACT:
Harri Hietaranta, Head of Human Resources, tel. +358 10 514 0560
Jarmo O Salonen, Head of Investor Relations, tel. +358 10 514 0030
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