Hilla Group considers layoffs amid financial challenges at regional newspapers across Finland

Hilla Group has initiated negotiations that may result in the layoffs of up to 20 employees. A total of 53 staff members from various regional newspapers within the media company are involved in the discussions, as first reported by the Keskipohjanmaa newspaper on its website.

The talks will specifically address the production and layout of free distribution newspapers in key areas: Kokkola in Central Ostrobothnia, Pietarsaaren Sanomat in Ostrobothnia, and Kalajoki in Northern Ostrobothnia. In Kainuu, the impacted publications include Kainuun Sanomat, Koti-Kajaani, Sotkamo-lehti, Vuokatti News, Kuhmolainen, and Ylä-Kainuu. In Lapland, negotiations concern LeviNyt! and Saariselän Sanomat.

The rationale for these discussions is grounded in production and financial challenges, along with a need for operational restructuring. Mikko Kallio, head of the publications business, indicated that restructuring may lead to the discontinuation of certain titles, although this would be viewed as a last resort. The primary aim remains to maintain a broad presence in the media market.

The financial situation of the affected newspapers has been deteriorating, attributed to declining advertising sales, a drop in circulation, and rising costs associated with materials and distribution. According to Kallio, the shift toward digitalization has reduced revenue, as online advertising tends to generate less income than traditional print media. In the first half of this year, Hilla Group reported a loss of €500,000 and currently publishes 25 different newspapers.