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Finnish stainless steel maker Outokumpu to fire 650 people over coronavirus

Europe / Business and Finance

The layoffs are part of the company’s program to improve EBITDA by € 200 million and bring the net debt to EBITDA ratio below 3.0x by the end of 2022.

Finnish stainless steel maker Outokumpu to fire 650 people over coronavirus

Finnish stainless steel maker Outokumpu on Tuesday announced 650 job cuts in Europe due to “difficult market conditions”.

As a result of negotiations with trade unions, Outokumpu is cutting its staff by 250 people in Finland, by 230 people in Germany and by 170 people in Sweden. In addition, further reductions in personnel at the company's American plants by 250 employees continue.

The planned total headcount reduction by 1,000 will be fully completed by the end of 2021. Outokumpu plans to reduce its headcount to less than 9,000 in 2022.

"Due to the challenging market environment with continued high import pressures in Europe and the COVID-19 pandemic affecting the global economy, it is imperative that the company be cost competitive by reducing fixed costs, a significant part of which are personnel costs." - says Outokumpu's post.

Staff reductions are expected to result in total annual savings of around € 70 million, of which € 60 million are direct personnel costs.

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