Job cuts and savings program at the Olma trade fairs
Published: Thursday, Nov 28th 2024, 11:50
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The share capital targeted by Olma Messen has not yet been reached. Now the company is announcing cost-cutting measures and a reduction of ten jobs. One of the reasons for the problems: The new hall cost 26 million francs more than expected.
Olma Messen wants to implement a "broad-based efficiency program". Ten of the current 90 full-time positions will be cut. The company also plans to reduce costs for suppliers and make more intensive use of the site.
One of the reasons for the savings program is the lack of share capital. Olma Messen had planned a capital increase of around 20 million francs. Since February 2023, shares have been available for subscription at an issue price of CHF 1100.
The target has not yet been achieved. The share capital currently stands at CHF 14 million. The subscription period is still open. In addition to the missing amount from the capital increase and the subsequent loss of earnings due to the Covid-19 pandemic, additional construction costs of CHF 26 million for the new hall must be compensated for, according to the press release.
Redundancies planned
The job cuts are to be absorbed through "natural fluctuation", but individual redundancies are unavoidable. There are also plans to "pause" investments in IT, furniture and real estate. Olma Messen wants to demand "a substantial contribution to cost efficiency" from suppliers and service providers.
In recent years, the public sector has helped the company twice. Due to the losses caused by the Covid-19 pandemic and the burden of building the hall, the city parliament and cantonal council each initially granted a loan of CHF 8.4 million in September 2020.
At the beginning of 2023, two further parliamentary resolutions were passed to waive the repayment of these loans. The funds are to be converted into share capital. In April, the Olma Messen cooperative became a public limited company.
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