The change negotiations covered 2,100 of the company's 4,500 employees, meaning roughly 5% of total headcount, and about 10% of those in scope, are being let go.
The May 5 news isn't a surprise. It's the third act of a story that opened on October 30, 2025.
Act 1 — the warning
On October 30, Pihlajalinna issued a profit warning. 2025 revenue would land near €650M, down from €704.4M the previous year. Management pointed to divestments in housing services and weak demand from the public sector "low morbidity and low procurement volumes."
Crucially, profitability guidance was left intact: EBITA was still expected to land at €65M or above, against €55.2M the year before. The translation was clear. The top line was collapsing faster than expected, and margins would be defended by cutting.
Act 2 — the scaffolding
The scaffolding for those cuts went up the very next morning. On October 31, Pihlajalinna paired its Q3 report, revenue down 9.3%, adjusted EBITA up 18.2%, with a brand-new operating model and Management Team, effective January 1, 2026. The company collapsed into four units: health services, medical leadership, commercial operations, and group services. Anu Kallio left the management team in December. Seppo Kariniemi's role shifted on January 2.
Act 3 — the cuts
Today's announcement closes the loop: revenue shock, then a new operating model, then a workforce right-sized to match it.
What isn’t closed is the outcome. The new structure is built for a smaller cost base. But it now has to prove it can carry growth.
