Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Finnish steel company Outokumpu announced that it will cut about 1,000 jobs worldwide by the end of 2021 due to internal restructuring. The redundancies are planned to be 270 in Finland, 250 in Germany and 190 in Sweden, with further reductions planned across the European and Americas-based operations. The company has initiated negotiations with employees' representatives in selected countries.
The CEO of the company said that 'the planned restructuring measures are necessary to adjust our cost structure' and that 'we will do our utmost to ensure a transparent and fair process during this difficult time'.
The restructuring programme is related to the COVID-19 pandemic and its impact on the steel sector. The personnel reductions are expected to generate total annual savings of approximately €70 million, with direct personnel cost savings accounting for €60 million of the total. With the planned measures, Outokumpu is looking to secure its cost competitiveness. The costs of the planned restructuring are expected to amount to approximately €75-80 million.
Currently, Outokumpu has 10,000 employees worldwide.
Updated, 22/12/2020:Outokumpu announced that it completed negotiations with employees' representatives in selected operating countries. As a result, the company will cut 250 jobs in Finland, 230 in Germany and 170 in Sweden. Additionally, further redundancies of about 250 positions have already been implemented in units located in Europe and America. Outokumpu aims to achieve a headcount of less than 9,000 employees in 2022.
Eurofound (2020), Outokumpu, Internal restructuring in World, factsheet number 102555, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/102555.
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