Inside information: F-Secure initiates change negotiations on planned alignment of its organizational structure and operating model with its strategic growth initiatives and financial targets

F-Secure Corporation and its subsidiaries (“F-Secure”) initiate group-wide statutory change negotiations to restructure its global operating model and personnel to align with the strategic priorities and financial targets of the company. On September 8, 2023 F-Secure issued a profit warning and lowered its financial outlook for the year 2023 revenue and adjusted EBITA due to weaker than expected business performance.

F-Secure’s operating environment has been subject to various uncertainties due to the ongoing war in Ukraine and high inflation, which has led to a weakened consumer sentiment and lower demand. In addition to changes in the operational environment, the company has identified a need to streamline its organizational structure, to reduce management layers and clarify roles after the demerger from WithSecure and post integration with Lookout Life.

The change negotiations concern the entire F-Secure personnel globally. According to the initial estimate, the change negotiations could result in a reduction of a maximum of 70 positions, of which maximum of 50 are expected to be in Finland. F-Secure employs a total of 516 people as of September 30, 2023.

“During the past quarters, we have experienced challenges in both Direct Business and Partner Business due to the difficult operational environment. Regardless, there is a need for further investments into strategic growth initiatives and new competences. In addition, we have identified opportunities to streamline our operations after the demerger from WithSecure and post integration with Lookout Life. With the planned changes, we aim to further improve our efficiency, operational activities and decision-making. To initiate change negotiations is a difficult decision but a necessary one to secure a sufficient level of profitability while we continue to invest in our strategic growth initiatives.” says Timo Laaksonen, President and CEO of F-Secure.

The planned changes are estimated to generate annual cost savings of around EUR 9 million versus current run rate. One-off costs related to the planned changes are expected to be recorded as items affecting comparability (IAC), and more information about these will be disclosed once the negotiations are concluded.

In Finland, the change negotiations will begin on October 30, 2023 and the negotiations will last an estimated six weeks unless otherwise agreed. All applicable processes will be conducted in accordance with local legislations in each country. F-Secure is committed to communicating openly with its employees throughout the negotiation process and will report the outcome once the negotiations are concluded, which is estimated by mid December.

The change negotiations do not affect the previously disclosed financial outlook for 2023 or medium term financial targets of F-Secure.

For further information, please contact:

Sari Somerkallio, Chief Financial Officer
tel. +358 40 3569251

Kitta Virtavuo, Chief People Officer
tel. +358 40 7577881

F-Secure in brief

F-Secure is Finland headquartered and globally operating consumer cyber security company. F-Secure offers award-winning security and privacy products and services that make every digital moment more secure, for everyone. F-Secure operates in over 100 countries, has ~200 Service Provider partners and is the global leader providing security through Communication Service Providers. F-Secure Corporation is listed on Nasdaq Helsinki Ltd. Read more: www.f-secure.com.