Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
The Norwegian furniture manufacturer Ekornes will cut 150 jobs in production at factories in Grodås and Sykkylven in Northwestern Norway and 40 jobs in administration by March. Those cuts follow additional 81 job cuts which were made in production in September 2022.
The reasons behind the downsizing is that the company is experiencing a fall in demand combined with increased prices on raw materials and transportation costs. The company will also reduce investments and indirect costs in addition to the downsizing. The redundency notice will be delivered in January, and effectuated from March 2023. Seniority is an important criteria for who loses their job. The two factories hired many workers during the pandemic, from 2020 to 2022, when there was an increase in demand. The trade union representative knew that a downsizing would take place, but was surprised that the numbers were so high.
Ekornes was established in 1934 in Northwestern Norway. In 2018, the company was acquired by the Chinese company Qumei Home Furnishings Group, which invested heavily in the company. At the same time, the company was taken off the Oslo Stock Exchange, were it had been listed since 1995. The company has a total of eight factories, five in Norway, one in the US, one in Thailand and one in Lithuania. The company also downsizes its operations in South East Asia and cuts 700 jobs in Vietnam. In September, Ekornes had over 3300 employees, whereby 1300 worked in Norway. With the current job cuts, the company downsizes with about a third of its employees.
Eurofound (2023), Ekornes, Internal restructuring in Norway, factsheet number 108166, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/108166.