Outotec to reduce over 100 employees in Finland

Outotec to reduce over 100 employees in Finland

Outotec announced on February 9, 2010 its new operational model and measures to improve internal efficiency, targeting at EUR 25 million annualized savings in operational fixed costs compared to the cost level of the fourth quarter of 2009. Part of these savings will come from personnel reduction.  Outotec has concluded the employee negotiations started on February 11, 2010 in Finland to seek alternative ways for cost saving and measures to minimize the need for redundancies.

The outcome of the negotiations is that there will be altogether 84 redundancies in Outotec's corporate management, support functions, research center and business units in Finland. The redundancies will be implemented in April 2010. The total personnel reduction in Finland by the end of 2010 will be approximately 120 employees when taking into account retirements and termination of temporary contracts. The need for possible temporary lay-offs will be decided separately during the first half of 2010.

In addition, the estimated need for personnel reductions in Outotec's global operations is approximately 50 employees in 2010.