Metsä Group has announced plans to reduce permanent staff numbers by 540 as part of a €300m cost savings and profit improvement programme.
The company originally announced its cost savings programme in July aimed for improving profitability and efficiency as well as ensuring competitiveness.
It said the majority of the cost savings of the programme comes from reductions in external costs. In addition, Metsä said it aimed for savings in fixed costs, which is why the Group announced on October 2 that it will launch statutory negotiations in its operating countries.
Following completion of statutory negotiations, 520 permanent positions will be terminated, with a maximum of 440 redundancies. The reductions at Metsä Board in Finland are included in these figures. Outside Finland, statutory negotiations are still partly continuing.
“This is a very sad moment for our entire committed work community,” said Jussi Vanhanen, President and CEO of Metsä Group.
“However, it is an indispensable part of the profit turnaround we are aiming for. Our operating environment has changed significantly, and the market situation continues to be very challenging.”
