Business News
Metso to lay off and reduce personnel in the Automation business line in Finland
Tuesday 10. March 2009 - Metso has concluded the employee negotiations in the Process Automation Systems unit of the Automation business line. The negotiations affected all of the units employees in Finland.
As a result of the negotiations completed yesterday, there will be 77 personnel reductions. All reductions are white-collar employees. Some of the personnel subject to the reduction measures may be offered an alternative position within the unit. Additionally, unit-specific temporary layoffs of varying durations will be implemented, depending on workloads. The temporary layoffs are estimated to correspond to 53 man-years of work and they affect almost all personnel of the Process Automation Systems unit.
As a result of the negotiations, the unit will also consolidate production operations and reorganize the work sites. Some of the operational restructuring measures are under way. Already the unit concluded a sale of the roll tracking application in paper making finishing line to Protacon Group. The divested business has employed 7 people.
The reductions will be implemented by the end of March. In order to secure continuity of operations, the temporary layoffs will be implemented in phases during 2009. Some of the layoffs may be implemented as shortened work hours.
When the personnel negotiations commenced on January 19, the employee reduction need was estimated at a total of 90-130 individuals. One of the alternatives reviewed was whether some of the reductions could be substituted with the temporary layoff of a larger number of unit employees.
The measures are the result of the permanently weakened paper and pulp industry markets. More than half of the Process Automation Systems units orders have originated from the pulp and paper industry. The units operations and cost structure must be adjusted to the changed market situation.
The Automation business line employs about 1,700 people in Finland. The Process Automation Systems unit employs about 830 people in Finland and its largest sites are in Tampere and Kajaani.