Finnish sawmilling and biofuels group Vapo has launched staff reduction consultations affecting all its activities.
The move follows a warning from Vapo last October that it was preparing for possible lay-offs in the first half of 2012. Production cutbacks in its sawmilling activities and a group streamlining programme were also announced towards the end of 2011.
Vapo said it aims to identify savings equivalent to around 90 person work years of wage costs. Consultations with the group’s 800 staff will begin next week and will last around six weeks.
“The company has so far been able to avoid staff reduction measures,” said Vapo CEO Tomi Yli-Kyyny. “However, changes in the operating environment and the company’s impaired financial performance have meant that in order to improve competitiveness and profitability it is essential to deploy all possible savings measures.”
Vapo is encouraging all employees to convert 2012 holiday pay into unpaid time off in order to minimise the number of jobs shed. Senior management has already made this move.
The operating loss of the Vapo Group for 2011 is estimated to be around €30m.
