Translation: Original published in Finnish on 11/22/2024 at 7:00 am EET.

Mandatum announced on Thursday that it will start change negotiations to streamline the company's operations. The negotiations mainly focus on support functions and concern approximately 150 employees. The planned measures, if implemented, could lead to the dismissal of a maximum of 36 employees, or about 5% of the group's workforce.

Operational streamlining behind the change negotiations

Mandatum will start change negotiations on December 3, 2024, with the aim of maintaining the company's competitiveness by streamlining support functions. The change negotiations mainly focus on the group's support functions, and therefore the company's customer service, portfolio management and sales functions with client responsibilities are excluded from the measures. The measures concern approximately 150 employees in total (~22% of Mandatum's workforce) and a preliminary estimate is that the changes may lead to the termination of up to 36 employees. This means a maximum reduction of around 5% of the group's workforce, and the company is also looking at reorganizing functions and combining overlapping roles.

The company's objective is to improve its cost/income ratio, which we believe is an obvious goal since the asset management business itself is highly scalable. However, the savings or costs of the change negotiations were not disclosed in the press release, so the final cost impact will only be known later. As a result, we are not making any changes to our forecasts based on the press release for the time being. However, our initial assessment is that the impact will be relatively limited given the scope of the change negotiations, but we will review any potential effects on our estimates when the negotiations are concluded.