Wartsila Preps for Layoffs

Wartsila has started a process to realign its organisation to secure future profitability and competitiveness.

The group-wide efficiency programme is expected to lead to a reduction of approximately 1,000 employees globally, of which about 200 are planned to be in Finland. The reductions will impact all businesses and support functions.

With these actions Wärtsilä seeks annual savings of EUR 60 million. The effect of these savings is expected to materialise fully by the end of 2014. The non-recurring costs related to the restructuring measures will be EUR 50 million. Of these costs EUR 11 million was recognised in 2013, as certain measures were initiated at the end of the year.

Despite some signs of improvement in market conditions, the business environment remains challenging. Vessel contracting activity is expected to remain at improved levels, but overcapacity and price pressure is still a concern.

Uncertainties in the global economy have caused delays in power generation market activity. The service market development remains stable. The volatility in the market demand has increased and Wärtsilä is adapting its organisation to this reality. The synergies that were identified in the merger of the Ship Power and PowerTech organisations are also being implemented.

In an environment of slow growth and intense competition, we must take steps to adjust our cost structure accordingly. Only by increasing the efficiency and flexibility of our organisation globally can we secure profitability and maintain competitiveness going forward. Unfortunately redundancies cannot be avoided,” says Björn Rosengren, President & CEO.

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 2013, Wärtsilä had 18,663 employees in nearly 70 countries globally.

 

Press Release, January 29, 2014

Share this article

Follow World Maritime News

Posted on January 29, 2014

In Depth>

Events>

<< Apr 2015 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

INAMARINE 2015

INAMARINE will continue to be the Indonesia’s largest marketplace for maritime industry…

read more >

Ice Class Vessels

Many kinds of Vessel operate near the poles, all of which are exposed to a number of unique demands…

read more >

Subsea Vessels Europe

Subsea Vessels Europe is an expert annual briefing on global subsea vessel opportunities, technical developments and operational best…

read more >

Future Conference: Wind & Maritime

The “Future Conference; Wind & Maritime” from 6 to 7 May 2015 in Rostock offers a compact overview of current challenges, market and…

read more >