Metsä Group to initiate statutory negotiations to improve its profitability and operational efficiency

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Metsä Group is to initiate statutory negotiations concerning all of its business areas and Group operations. According to preliminary assessments, the planned measures may lead to a permanent reduction of 800 permanent jobs if implemented.  

On 31 July 2025, Metsä Group announced it would launch the planning of a EUR 300 million cost savings and profit improvement programme. Planning is now complete, and Metsä Group will initiate statutory negotiations concerning its personnel as part of it. 

“Our profitability has been undermined by three factors. First, increased uncertainties in global trade have reduced demand for our products. Second, changes in exchange rates have weakened our result and will continue to do so. Third, the increase in raw material costs and the general cost level has eroded our profitability,” says Jussi Vanhanen, President and CEO of Metsä Group. “We operate in a capital-intensive business in which lower utilisation rates due to weak demand combined with clearly higher costs create an unsustainable equation that must be addressed,” says Vanhanen. 

When planning the cost savings programme, attention was paid to procurement and logistics costs, and the wood supply chain’s efficiency. These account for a considerable share of the planned savings. In addition, the need to restructure and streamline operations to reduce fixed costs was recognised. Significant efficiency enhancement measures were also identified in variable costs. 

“Our employees have done good work within our current operating model. Unfortunately, it isn’t enough in this situation. We must tackle the things that are in our own hands and shape our operations to ensure long-term competitiveness,” says Vanhanen.  

According to preliminary assessments, the planned measures may lead to a permanent reduction of 800 permanent jobs. A significant share – 540 jobs – are expected to be in Finland. In addition to redundancies, the planned changes may lead to changes in duties. Statutory negotiations with personnel representatives will be initiated in accordance with each country’s legislation. Metsä Group employs approximately 9,600 people globally, of whom 5,600 are in Finland. The planned reductions at Metsä Board, a listed company part of Metsä Group, are included in these figures.  

The negotiations will not include permanent closures of production units. The development of Metsä Group’s new business projects (Muoto, Kuura, lignin and bio-based CO2 capture) will continue according to each project’s individual plan and schedule. Cost provisions related to the cost savings and profit improvement programme will be recorded in the result for the last quarter of the year.

Further information: 
President and CEO Jussi Vanhanen between 12.45 and 15.00 CET. Reservations for interviews please contact Metsä Group Communications, tel. +358 40 512 4237


Metsä Group
www.metsagroup.com

Metsä Group has its roots in the Finnish forests: our parent company Metsäliitto Cooperative is owned by over 90,000 forest owners. We use wood to make recyclable products for the day-to-day lives of millions of people globally. We focus on wood supply and forest services, wood products, pulp, paperboards, and tissue and greaseproof papers. We are committed to the principles of regenerative forestry to measurably strengthen the state of forest nature. We promote a culture of diversity, equality and inclusion. In 2024 our sales totaled EUR 5.7 billion, and we have around 9,600 employees.

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