Wärtsilä announces job losses
Published by Callum O'Reilly,
Wärtsilä has announced plans to realign its organisation, operations and resources to reflect the increasingly tough competitive environment and the weakened newbuild market situation.
The company notes that the plans will mainly affect personnel in its Marine Solutions' and Energy Solutions' global operations. However, common functions in the affected countries will also be reviewed. Wärtsilä also confirmed that it plans to concentrate more of the engine related R&D activities to Finland in an attempt to reduce development cycles. The realignment will mean a loss of approximately 550 jobs, of which some 270 will be in Finland.
Wärtsilä is hoping that these changes will result in annual savings of approximately €50 million. The company expects the effect of the savings to materialise gradually beginning from 2Q16, and taking full effect by the end of 2017. The costs related to the restructuring measures will be approximately €50 million.
Jaakko Eskola, President & CEO, Wärtsilä Corp., said: "These unfortunate capacity adjustments have to be made to maintain our competitive position in the global market. We will do our utmost to provide support for those individuals whose jobs will be affected by the streamlining. Our commitment to our customers remains solid."
Currently, Wärtsilä Marine Solutions employs 6681 people globally and Wärtsilä Energy Solutions employs 958 people globally.
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/21042016/wartsila-announces-job-losses-2327/
You might also like
Forecasting fast gas growth
Priya Bose, MarketsandMarkets, India, outlines how the recent growth in global energy demand has resulted in a significantly larger LNG market.