The negotiations were part of Metso's global cost competitiveness program launched this past April to adapt to changes in the marketplace. The program targets an annual cost reduction in the Pulp, Paper, and Power segment of approximately EUR 100 million by 2016. The aim of the personnel reductions at this stage is to achieve savings of approximately EUR 50 million in annual costs. The cost savings for 2013 are estimated to be EUR 5 million.
The original workforce estimate was for a reduction of 750 positions, some 90 fewer than the current estimate. The reduction will take place through redundancies, retirement options, and terminations of temporary contracts. Internal transfers also will take place. 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.
Metso will provide a range of support measures for those affected by the restructuring through its "Polku" employment support program, which includes support for entrepreneurship, studying, and re-employment, such as job-to-job training, and relocation support.
"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," said Pasi Laine, president of Metso's Pulp, Paper, and Power segment.
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