Metsä Group has concluded its restructuring negotiations in Finland, initiated in October as part of the company’s extensive cost-saving and performance programme. Announced in July, the programme aims to reduce costs by 300 million euros and improve efficiency and competitiveness in a persistently weak market environment.
The company confirms that 520 permanent positions in Finland will be eliminated, of which up to 440 will be eliminated through layoffs. The initial estimate was 540 positions, meaning the final figure is slightly lower than expected. The reductions also include roles within Metsä Board, a listed company belonging to Metsä Group.
Outside Finland, restructuring negotiations are still ongoing in several of the Group’s operating countries.
CEO: “A very difficult but necessary process”
Metsä Group’s President and CEO, Jussi Vanhanen, says the decision is painful but unavoidable given the company’s financial situation and the current market conditions.
– “This is a very unfortunate situation for our entire committed work community. However, it is a necessary part of the turnaround we are striving to achieve. Our operating environment has changed significantly, and the market situation remains extremely challenging,” Vanhanen says in the company’s statement.
The Group states that it will offer broad support to affected employees, including transition programmes and advisory services. According to the company, the goal is to ease the process for those who must leave their positions.
Cost pressures and weakening demand are driving the cuts
The savings programme covers both reductions in external expenses and cuts in fixed costs. High prices for energy, raw materials and logistics have tightened margins across the pulp, paper and forestry industries. At the same time, global demand for several paper and board products has weakened.
Finland’s forest industry has undergone major changes in recent years. Digitalisation, a softer global economy and structural declines in demand have affected production levels, and several major facilities have already reduced capacity or shut down parts of their operations.
Metsä Group’s adjustment programme forms part of a broader restructuring across the industry, where companies must balance investments in new production lines with substantial cost reductions to maintain international competitiveness.
The cost-related provisions linked to the programme will be recorded in the Group’s fourth-quarter result and reported as items affecting comparability.
