Kela to cut jobs and close service points in cost-saving plan

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				Kela to cut jobs and close service points in cost-saving plan

Kela is seeking €50 million in savings by reducing the number of staff and service points, with the workforce set to decrease by around 150 employees per year. Photo: Emmi Korhonen / Lehtikuva

Finland’s Social Insurance Institution, Kela, has announced plans to reduce its workforce and close dozens of service points as part of a broader cost-cutting programme.

The agency now aims to save €50 million in operating costs by the end of 2027, raising its previous savings target by €5 million. To meet the new goal, Kela plans to reduce its workforce by approximately 150 employees each year.

In addition to the job cuts, 28 physical service points will be replaced by other service channels in 2025. The agency has not yet disclosed where or how these alternative services will be provided. After the reduction, Kela will continue to operate 78 service locations across the country.

The changes are part of Kela’s long-term productivity strategy, which is intended to streamline operations while maintaining access to core services. The agency has indicated that digital services will play a larger role in delivering benefits and customer support.

Kela provides a range of social benefits in Finland, including health reimbursements, pensions, unemployment support, and child allowances. The restructuring comes as the agency faces ongoing pressure to reduce public spending while adapting to demographic and technological shifts.

HT

Source: www.helsinkitimes.fi

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