Metsä Group to Launch Statutory Negotiations on Job Cuts Amid Cost-Saving Program

On Thursday, Metsä Group said it will begin statutory negotiations with employees as part of its previously announced EUR 300 million (US$351.4 million) cost savings and profit improvement program.

The measures are expected to result in a permanent reduction of about 800 jobs, including 540 in Finland. Metsä Group employs around 9,600 people worldwide, with 5,600 based in Finland. The reductions include Metsä Board, the group’s listed company.

The cost-saving program, announced in July, targets procurement and logistics costs, efficiency improvements in the wood supply chain, and restructuring to lower fixed costs. The company also identified efficiency measures to reduce variable costs. Cost provisions related to the program will be recorded in Q4 results.

While job losses are planned, the company said no permanent closures of production units are foreseen. Development projects such as Muoto, Kuura, lignin, and bio-based carbon capture will continue as planned.

In a statement, Metsä Group President and CEO Jussi Vanhanen said:

“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. We operate in a capital-intensive business in which lower utilization rates due to weak demand combined with clearly higher costs create an unsustainable equation that must be addressed.”