Renewcell announces plans to cut workforce by 25%
11/01/2024
Changes are sought following lower-than-expected sales volumes of its Circulose ingredient brand. This led to Magnus Håkansson assuming the role of acting chief executive with immediate effect in October. The business said its restructuring would likely lead to the loss of “just over 30 persons”, a decrease of roughly 25%.
Savings in the region of $3.4 million or 35 million Swedish krona are expected.
“This kind of decision is never easy to make and would not be planned for unless it was absolutely necessary for our long-term success,” Mr Håkansson commented.
“The planned restructuring means that Renewcell will maintain conditions for efficient production, while continuing to focus on the development of sales to fibre producers [and] focusing on marketing activities to the major clothing brands that determine final demand in the supply chain.”
These planned activations include January’s appointment-only showcases of knits, denims and wovens alongside Circulose Supplier Network partners in London (January 16-17) and New York City (January 16).
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