Kempower looks to improve profitability, initiates change negotiations

Kempower disclosed earlier in July, that the DC charging market demand has been lower than it had earlier anticipated. Therefore the company is accelerating actions to improve its profitability – and as part of such actions initiating change negotiations. 

The target is to achieve annual cost savings of EUR 10 million. The change negotiations aim to implement the savings as temporary and permanent layoffs during the fall of 2024. The estimated reduction is approximately 10% of current resources globally, the majority of which will take place on Finland. 

Kempower will also implement other profitability-related measures related to external spending to turn the business profitable towards the end of 2024. 

“In recent years, we have solved numerous challenges daily as a team to facilitate growth. In the current market situation, we need to adjust the cost base to optimize the organizational effectiveness, and we need to act swiftly to turn business back to profitable,” says Kempower’s CEO Tomi Ristimäki in a press release.  

Kempower employs approximately 675 people in Finland and 232 people in other subsidiaries.