Valmet’s logo at the company’s headquarters in Espoo. The engineering company Valmet plans to reduce up to 395 employees in Finland. LEHTIKUVA
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Engineering firm Valmet has announced plans to reduce its global workforce by up to 1,150 employees, including 395 in Finland, as part of a broader strategy to streamline operations and cut costs.
The Espoo-based company said the cuts would apply to white-collar employees only and form part of a cost-saving programme targeting annual savings of €80 million starting in 2026.
Valmet employs around 19,000 people globally, of whom approximately 4,800 are based in Finland.
The company will begin statutory negotiations with employee representatives in the affected countries. In a statement, Valmet said it intends to support staff throughout the transition.
President and CEO Thomas Hinnerskov said the changes are driven by a need to respond to low market activity in the pulp and paper sector and to improve performance metrics that have stagnated in recent years.
“Overhead costs have increased more than sales. We need to ensure our business remains competitive and cost-efficient, especially in challenging markets,” Hinnerskov said.
Valmet’s updated operating model will introduce five business areas: Automation Solutions, Flow Control, Pulp, Energy and Circularity, Packaging and Paper, and Tissue. A new Global Supply unit will also be created, and corporate functions will be restructured.
The new operating model is scheduled to take effect on 1 July 2025. The company plans to detail its renewed strategy on 5 June at its Capital Markets Day.
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Source: www.helsinkitimes.fi
