Former employees of the Stockmann department store in Tallinn, Estonia, have reported repeated layoffs and unstable working conditions, raising concerns about the future of the Finnish-owned retailer in the Baltic region.
One former employee, speaking anonymously to Estonian media outlet Postimees, described a series of workforce reductions. “When I started working there, the first wave of layoffs had already happened, followed by a second the next year and finally a third and last one,” the former employee said. The account details a period of confusion and instability, with shifting management structures and unclear expectations.
The employee described initial optimism upon being hired, followed by a rapid unraveling of organizational clarity. “I applied, and had an interview with the team leader… everything seemed normal – I was directly told I was chosen and could start working. However, when I started, the HR department knew nothing about my employment. I was redirected to another manager who didn’t even know if there was an office in Estonia. I assumed the job was remote and started working from home,” the former employee stated.
Further complicating matters, the employee said, was a change in team leadership and a subsequent directive requiring all staff to work from the office, despite the initial understanding of remote work. “It was all just confusing. I was told my job would end in a month, and the manager was told he would stay until the end of the year. The constant meetings and explanations seemed to be about layoffs, but no one really understood what was happening,” they added.
The former employee also alleged a lack of prioritization of the Estonian branch by upper management. “The boss directly told our manager that he didn’t care about Estonia. Eventually, all the internet store employees in Estonia and Latvia were laid off.” Concerns were also raised about the management of sales strategies between the physical store and the online platform, creating tension and operational difficulties.
Stockmann’s Managing Director, Riku Lili, confirmed the importance of the Estonian market to the company, stating that the Tallinn department store “is a strategically important channel, and we will continue to invest and develop our services in Estonia.” Lili emphasized the brand’s strong recognition in both Estonia and Finland, stating they have “never considered changing our department store names.”
Lili highlighted recent investments in the Tallinn store, including renovations to the women’s accessories department in 2024 and the women’s fashion floor and cosmetics department in 2025. He also pointed to the continued importance of e-commerce, noting a 5.2% increase in digital revenue throughout 2025, accounting for 13.6% of total turnover. The company is implementing a multi-channel strategy, allowing customers to seamlessly shop across online and physical stores.
Lili also addressed the company’s focus on operational efficiency and cost optimization, stating that improvements in financial results have enabled further investment in the store and e-commerce operations. He emphasized the key role of the Tallinn team in implementing the company’s digital development and customer-focused strategy.
Despite the reported concerns from former employees, Lili stated that the Stockmann department store will continue to operate in Estonia under its established brand and serve customers with the same dedication it has demonstrated for the past 30 years.
