Forest industry company Metsä Group decided to initiate statutory negotiations concerning all of its business areas and Group operations, said the company in a press release on Thursday.
According to preliminary assessments, the planned measures may lead to a permanent reduction of 800 permanent jobs if implemented.
The company decided to cut the jobs as a part of its austerity measures to save EUR 300 million
Out of the 800, a significant share – 540 jobs – are expected to be in Finland.
In addition to redundancies, the planned changes may lead to changes in duties.
Statutory negotiations with personnel representatives will be initiated in accordance with each country’s legislation.
“Our profitability has been undermined by three factors. First, increased uncertainties in global trade have reduced demand for our products. Second, changes in exchange rates have weakened our result and will continue to do so. Third, the increase in raw material costs and the general cost level has eroded our profitability,” said Jussi Vanhanen, President and CEO of Metsä Group.
When planning the cost savings programme, attention was paid to procurement and logistics costs, and the wood supply chain’s efficiency.
In addition, the need to restructure and streamline operations to reduce fixed costs was recognised.
