Outotec to Cut 150 Jobs in Finland
01/04/2016 - Finland’s Outotec will cut 150 jobs at home and throttle back production at a machine shop and at its filters unit as it attempts to pare EUR70 million in fixed costs.
In November, the company announced it needed to reduce costs on account of further weakening in the mining and metals industry and began employee cooperation negotiations with its Finnish workforce.
At the time, the company estimated that it needed to cut 160 positions. However, as a result of discussions, it will cut 150 jobs, 105 of which will come through layoffs. The remainder, it said, will be made through other means, such as retirement arrangements, voluntary leavers and forgoing renewal of fixed-term contracts.
Most of the reductions are to be completed by the end of the month.
Additionally, Outotec is temporarily laying off employees in the Turula machine shop and Lappeenranta filter unit.
“Possible temporary layoffs in other locations depend on the development of the market environment and Outotec's order intake,” the company said.
Aside from those measures, the company said it expects to achieve significant savings by reducing its use of contractors by approximately 120 person-years in Finland.
The company said the cost-cutting initiative could lead to a reduction of 650 employees throughout its global operations.
At the time, the company estimated that it needed to cut 160 positions. However, as a result of discussions, it will cut 150 jobs, 105 of which will come through layoffs. The remainder, it said, will be made through other means, such as retirement arrangements, voluntary leavers and forgoing renewal of fixed-term contracts.
Most of the reductions are to be completed by the end of the month.
Additionally, Outotec is temporarily laying off employees in the Turula machine shop and Lappeenranta filter unit.
“Possible temporary layoffs in other locations depend on the development of the market environment and Outotec's order intake,” the company said.
Aside from those measures, the company said it expects to achieve significant savings by reducing its use of contractors by approximately 120 person-years in Finland.
The company said the cost-cutting initiative could lead to a reduction of 650 employees throughout its global operations.
