To realign its organisation, Wärtsilä has announced it will cut 1000 jobs globally. The reductions will impact all businesses and support functions.
Wärtsilä states the measures are necessary to secure future profitability and competitiveness. In Finland, 200 people will loose their jobs.
Savings of 60 Million Euros
The measures will result in annual savings of 60 million euros. The effect of these savings is expected to materialise fully by the end of 2014. The non-recurring costs related to the restructuring measures will be 50 million euros. Of these costs, 11 million was recognised in 2013, as certain measures were initiated at the end of the year.
Overcapacity and Price Pressure
Despite some signs of improvement in market conditions, the business environment remains challenging. Vessel contracting activity is expected to remain at improved levels, but overcapacity and price pressure is still a concern.
Uncertainties in the global economy have caused delays in power generation market activity. The service market development remains stable. The synergies that were identified in the merger of the Ship Power and PowerTech organisations are also being implemented.
Consultation Processes
The planned reductions are subject to consultation processes, which will be initiated in the affected countries according to local practices and legislation. The company will provide support and consultation as well as assistance in re-employment in the impacted countries.
At the end of 2013, Wärtsilä had 18,663 employees in nearly seventy countries globally.
Picture: Wärtsilä Helsinki office (by Wärtsilä)
