Elevator Giant KONE announces major job cuts to boost competitiveness

Kone, elevator giant, announces major job cuts

In a significant move aimed at improving competitiveness and customer focus, Kone, the Finnish elevator manufacturer, has announced plans to cut 1,000 jobs globally, with 150 of those cuts to be made in Finland.

In the midst of a rapidly changing operating environment, the company believes that these changes will result in a simpler operating model and improved growth and profitability. The restructuring effort is expected to bring annual savings of 100 million euros starting in the second half of this year.

The planned job cuts represent 1.6% of Kone’s global workforce of over 63,000 employees and are part of the company’s efforts to streamline operations and stay ahead of the curve.

Kone’s CEO and President, Henrik Ehrnrooth, has said in a statement that these changes provide opportunities for the company to increase the value it creates for its customers.

Despite posting stronger-than-expected Q4 2022 earnings, Kone’s order intake was below analyst expectations.

However, the company is optimistic about its future prospects, with CEO Ehrnrooth stating that Kone expects markets in China to recover towards the end of the first half of this year, and that demand is also expected to grow in other parts of Asia and the Middle East.

Shares in the company have already shown a positive reaction, with a 1.8% increase in afternoon trade in Helsinki following the earnings report.

In conclusion, Kone’s announcement of major job cuts is a significant move in the company’s efforts to stay ahead in a rapidly changing operating environment.

The company’s focus on improvement and growth is expected to bring benefits not only to Kone but to its customers as well.

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