Metsä Group has announced the start of statutory negotiations across all its business areas and Group operations, as part of a previously announced EUR 300 million cost savings and profit improvement programme. According to preliminary assessments, the planned measures could result in the permanent reduction of approximately 800 positions worldwide.
The company had first disclosed the initiative on 31 July 2025, and after completing the planning phase, it is now proceeding with personnel negotiations to implement the programme.
“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,” explained Jussi Vanhanen, President and CEO of Metsä Group. “We operate in a capital-intensive business in which lower utilisation rates due to weak demand combined with clearly higher costs create an unsustainable equation that must be addressed.”
The programme will focus on procurement and logistics efficiencies, as well as the optimization of the wood supply chain, which together represent a significant portion of the targeted savings. The company also identified the need to restructure and streamline operations to reduce fixed costs and to implement efficiency measures in variable costs.
“Our employees have done good work within our current operating model. Unfortunately, it isn’t enough in this situation. We must tackle the things that are in our own hands and shape our operations to ensure long-term competitiveness,” added Vanhanen.
Out of the approximately 800 roles that may be affected, around 540 are expected to be in Finland. In addition to potential redundancies, some changes in job duties may also occur. The statutory negotiations will be conducted with employee representatives in accordance with the legislation of each country. Metsä Group currently employs about 9,600 people globally, including 5,600 in Finland. The potential reductions at Metsä Board, the Group’s listed subsidiary, are included in these figures.
The company stated that no permanent closures of production units are planned. Meanwhile, Metsä Group’s new business development projects – including Muoto, Kuura, lignin, and bio-based CO₂ capture – will continue as scheduled. Cost provisions associated with the programme will be recorded in the fourth quarter of 2025.
Tags:
