Mass job cuts at Metso cap grim day for job news

Machinery manufacturer Metso set a new record for job cuts in Finnish industry for this year.
      The company plans to cut more than 1,000 jobs - one in every three involved in the manufacture of paper machines.
      Furthermore the move involves permanent job cuts, not temporary layoffs.
      Co-determination talks with personnel on the cutbacks are to start, concerning the need by Metso Paper to cut between 900 and 1,200 jobs. In addition, Metso Automation plans either temporary or permanent layoffs of affecting 90-130 employees, and Metso Minerals needs to cut 200 jobs and impose some temporary layoffs as well.
      ”It is very unfortunate that we have to start measures of this magnitude in Finland. However, we want to ensure the competitiveness of the solutions we offer to the pulp and paper industry also in the future”, said Metso CEO Jorma Eloranta in a press release issued on Monday.
     
Metso expects investments by paper manufacturers to decline by a third compared with the 2004-2008 period, although the pace of investment in recent hears has been intense.
      Nevertheless, Eloranta notes that demand for new heavy machinery will remain low, and that if any demand exists, it will mostly be in China, where Metso could even have to hire more employees.
     
Also on Monday, pulp and paper manufacturer Stora Enso began discussions with personnel on temporary redundancies for more than 5,000 employees.
      In the latter half of last year Stora Enso already significantly limited its output of paper and cardboard products, as well as production of pulp and sawn timber. The output restrictions continue in the spring because of weak demand.
      The construction company SRV is also starting talks with personnel on temporary and permanent layoffs stemming from decreased construction and slow sales. SRV says that it needs to permanently cut no more than 130 jobs, 80 of which are in Finland.
     
The media company Sanoma News, which publishes Helsingin Sanomat and a number of other publications, announced an efficiency campaign aimed at cutting staff by 100 to 200. The company currently employs 2,400 people.
      Sanoma News President Mikael Pentikäinen said that the rationalisation programme was made necessary by the fact that job and housing advertising for newspapers has declined sharply in recent months.
      The aim is to cut personnel primarily by offering ageing employees a severance package. Personnel are also being encouraged to exchange their holiday pay for extra time off.

More on this subject:
 Economists on unemployment: the worst is yet to come

Links:
  Metso press release 19.1.2009: “Metso is preparing operational adjustments at its mining and construction technology operations in Finland to reflect the current market situation ”
  Stora Enso press release 19.1.2009:Stora Enso plans temporary lay-offs in its operations in Finland
  SRV stock exchange release 19.1.2009: SRV Group prepares for the downswing in the market situation and starts negotiations concerning adjustments
  Sanoma News press release 19.1.2009: Sanoma News launches a new rationalisation programme