The Administration Centre ST must cut costs

A round of cost-cutting measures and layoffs at the Administration Centre ST was announced on Wednesday 13 September.

2017.09.14 | Christina Troelsen

A round of cost-cutting measures will be implemented at the Administration Centre ST during the course of autumn. The centre has to save approximately DKK 7.5 million in 2018 and 2019. This means a layoff of app. 12-15 jobs. 

The cuts are part of the administrative savings adopted by the Senior Management Team in 2014, when the decision was made to save 2% per annum until 2019. This was because of a desire to shift funds from administration to core business. The time frame has subsequently been extended to 2021.

The Administration Centre has made targeted efforts to secure the savings, partly via work on efficiency improvements, and partly through natural retirement. However, it has not been possible to reach the target by the latter measure. It is therefore necessary to lay off staff as well as making efficiency improvements.

The forthcoming round of cost-cutting measures will put the administration under pressure for a while. Some things will therefore take longer than normal, and some services will be given low priority.

Administration Centre Manager Niels Damgaard Hansen will initiate an inclusive process to clarify and decide on what measures the administration will offer in future and what will be discontinued. There will be a focus on uniform services, without a total transfer of tasks to departments and centres. The work on improving efficiency will also continue.

“Via more standardised service and efficiency improvements, I believe the Administration Centre can eventually provide even better service than today. During the transition period, however, reduced service must be expected in some areas, partly because the layoff process creates uncertainty at the centre, and also because there will be fewer hands to do the work,” says Dean Niels Chr. Nielsen.

The round of cost-cutting measures will be carried out during autumn.

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