The negotiations were part of Metso’s global cost competitiveness program launched in April 2013 (stock exchange release April 23, 2013) to adapt to changes in the marketplace. The program targets an annual cost reduction in the Pulp, Paper and Power segment of approximately Euro 100 million by 2016. The aim of the personnel reductions at this stage is to achieve savings of approximately Euro 50 million in annual costs. The cost savings for 2013 are estimated to be Euro 5 million.
As a result of the negotiations, Metso will reduce its workforce by a total of 660 positions. The original estimate was for the reduction of 750 positions. The reduction will take place through redundancies, retirement options and terminations of temporary contracts. Internal transfers will take place too. The impact of the reductions on the different Metso locations will be determined soon, after details of how many employees will transfer to other locations within the company are known.
Statutory negotiations covering Finnish operations in the company’s EMEA (Europe, Middle East, Africa) area organization are continuing.
In addition to personnel reductions, temporary layoffs might also be possible if required by the business’ workload or financial situation. This possibility will remain in force until the end of 2014, by which time the situation will have been reviewed. The possibility of temporary layoffs affects all units serving the paper industry.
“These personnel reductions are necessary to adjust our capacity in the Paper business to meet the fundamental structural changes that have taken place in our operating environment. Working together with personnel representatives, we are actively seeking to soften the impact of the reductions with the help of our wide-ranging employment support program,” says Pasi Laine, President of Metso’s Pulp, Paper and Power segment.
Metso is a global supplier of technology and services to customers in the process industries, including mining, construction, pulp and paper, power, and oil and gas.