State forest manager RMK to lay off 50
The Estonian state-owned State Forest Management Center (RMK) has announced the layoff of 50 employees, citing the streamlining and restructuring of its operations in an effort to reduce costs.
A month ago, RMK provided the Estonian Unemployment Insurance Fund (EUIF) with advance notice that it would be eliminating up to 80 of its jobs. It has now been confirmed that the layoff will affect 50 people.
"Since we are streamlining and restructuring our work in line with the targets set for RMK for the coming year, 12 employees have been given the opportunity to continue with the company in a different position or role," said RMK CEO Mikk Marran. "There were also some vacant positions, which is why the overall number of layoffs is lower than initially forecast."
All RMK structural units sought savings, and no department was left untouched by the layoffs. The last day of work for those being laid off will be November 30.
According to Marran, RMK has to resolve a number of challenges at once. These include increased expectations for dividends, an upcoming tax hike, tighter nature conservation regulations and a continuous reduction in the share of economic forests, as well as decreased volumes in the longer term and the implementation of other targets set in development plans and outlined in the owner's expectations.
This year, the Estonian government has decided to withdraw RMK's entire pre-tax profit from last year, totaling €119 million, as a dividend. To be added to this are income taxes totaling €38 million, bringing the total sum to €157 million.
The planned owner's revenue for 2025-2028, including income tax and tax adjustments, is €50.6 million a year, based on the government's decision to increase the dividend rate by 5 percent.
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Editor: Karin Koppel, Aili Vahtla