Engineering giant Valmet announced last week a significant restructuring initiative, leading to the permanent layoff of 433 employees globally, with 325 of those cuts affecting its Finnish workforce.
In addition to the job losses, the company confirmed temporary furloughs for up to 1,100 employees in Finland this summer.
The redundancies, which exclusively impact white-collar and managerial roles, are a direct result of changes to Valmet’s operating model, according to Human Resources Director Anu Pires.
While Valmet did not specify the exact locations of the layoffs, its Rautpohja site in Jyväskylä is widely expected to bear the brunt of the cuts. The Jyväskylä facility, a cornerstone of Valmet’s paper technology business since its founding in 1938, employs a substantial portion of the company’s white-collar staff in Central Finland, with nearly 1,100 out of 1,500 employees falling into this category.
The news of the layoffs follows a previous announcement in March, where Valmet signaled plans to cut up to 395 jobs in Finland.
This latest round of cuts, coupled with 112 layoffs in Finland during autumn 2024, reflects a sustained effort by the company to adapt to a dynamic global business environment.
Beyond the permanent job reductions, Valmet also confirmed temporary, unpaid furloughs for up to 1,100 employees in Finland. These leaves, which could last up to three months, will primarily affect staff within the company’s paper and board mills unit.
Valmet cited weaker market demand and the imperative to improve profitability as the primary drivers behind these temporary measures.
Valmet, with approximately 19,000 employees worldwide and 6,600 in Finland, is a major player in process technologies, automation systems, and services for the pulp, paper, and energy industries.
Founded in 2013 through the demerger of Metso Corporation’s pulp, paper, and power businesses, this Finnish engineering company has rapidly established itself as an essential partner for industrial operations worldwide.
Valmet operates across four primary segments that showcase its comprehensive industrial expertise. The Services division provides lifecycle support, maintenance, and upgrades for existing installations, ensuring optimal performance throughout equipment lifecycles.
The Pulp and Energy segment delivers complete production lines and power plant solutions, from biomass-fired facilities to recovery boilers. Paper manufacturing receives dedicated attention through advanced machinery for various paper grades, while the Automation division offers cutting-edge process control systems and industrial internet solutions.
According to the company, its technologies enable customers to utilize renewable raw materials more efficiently, reduce energy consumption, and minimize environmental impact.
Their biomass and waste-to-energy solutions particularly align with global decarbonization goals, helping industries transition toward cleaner energy sources.
Research and development investments consistently represent a significant portion of Valmet’s revenue.
The company serves customers across six continents, with manufacturing facilities strategically located to support regional markets effectively.
Valmet’s financial performance reflects its market strength, with annual revenues exceeding €4 billion. The company’s stock trades on Nasdaq Helsinki, and its consistent profitability demonstrates the stability of its business model despite cyclical industry conditions.
