Wärtsilä Corporation is realigning its operations and resources to secure future profitability and competitiveness. As a result, 1200 jobs will be lost.
The Group-wide actions include an increased focus on targeted sales activities, developing the agreements-based and “as-a-service” business, reviewing the cost structure, as well as optimising the business portfolio and organisation. The workforce reductions will impact all businesses and support functions.
Savings of EUR 100 Million
With these actions Wärtsilä seeks annual savings of EUR 100 million. Savings are expected to materialise gradually during the second half of 2019, with full effect by the end of 2020. The costs related to the restructuring measures are expected to be EUR 75 million.
Trade Tensions, Geopolitical Uncertainty and Market Volatility
'The business environment around us is changing with increasing speed. Trade tensions, geopolitical uncertainty, and market volatility are sources of concern. We have performed reasonably well in the prevailing market environment, thanks to our Smart Marine and Smart Energy strategies. Nevertheless, we must constantly strengthen ourselves to cope with current and future developments. To maintain our leading position in the market, and to stay strong, agile, and competitive, it is fundamentally important to continuously streamline our operations and align them to market requirements. This is a painful decision, but redundancies cannot unfortunately be avoided,' says Jaakko Eskola, President & CEO.
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 2018, Wärtsilä had approximately 19.300 employees in more than eighty countries around the world.
