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.
Mining / Quarrying Mining And Quarrying Mining Support Service Activities 09 - Mining support service activities
650 jobs Number of planned job losses
Announcement Date
20 November 2015
Employment effect (start)
1 December 2015
Foreseen end date
31 March 2016
Description
Outotec has announced a program to adapt its cost structure further which will lead to cut about 650 positions by 2016 (13% of its global workforce). The new costs saving plan aims at savings of EUR €70 million per year in fixed costs compared to the third quarter of 2015. The estimated one-time costs from the plan is at maximum of EUR €40 million, and will materialise mainly during the last quarter of 2015 and the first quarter of 2016. According to the company, about two thirds of the savings are expected to be coming from personnel costs.
The planned measures may lead to the reduction of permanent employees globally through redundancies and other arrangements. Additionally, discontinuing fixed-term agreements and temporary lay-offs may also be used to achieve the targeted savings. In addition, the amount of manufacturing, site services and external workforce will be adjusted according to business needs.
Outotec has also started negotiations with employees' representatives about the restructuring and possible reduction of workforce with the entire personnel in Finland (1,350 employees). The effects of the restructuring on different locations will be determined by mid-January 2016, but the management expects to cut a maximum of 160 permanent positions through redundancies and other arrangements. In addition, non-renewal of fixed-term contracts and temporary lay-offs may be used to achieve the targeted savings.
Sources
20 November 2015: Otoutec (Press release)
20 November 2015: Otoutec (Press release)
20 November 2015: Reuters News
Citation
Eurofound (2015), Outotec, Internal restructuring in World, factsheet number 86026, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/86026.
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