October 18, 2010
Wärtsilä sheds more jobs
Wärtsilä is slashing another 400 jobs worldwide. The reductions being made in this latest round of cuts are being made in its support functions and information management services.
Wärtsilä, which describes itself as "a global leader in complete lifecycle power solutions for the marine and energy markets," has operations in 160 locations in 70 countries around the world.
It says that, following an analysis of its support functions, it "has decided to implement a global design for each function to support the businesses in the most efficient way. The analysis indicates that there are overlapping activities and a need to adjust organizations to a new way of working and to lower volumes."
Some 130 of the planned 400 job reductions will be in Finland. The remaining reductions will be carried out in 30 countries. The consultation processes will be initiated in the affected countries according to local practices and legislation.
In its Information management activities, Wärtsilä says it "plans to establish strong competence centers in China and India to support its growing Asian markets."
“Although there are signs of recovery in the market, competition and price pressures will remain intense," says Raimo Lind, Executive Vice President & CFO. "To safeguard our competitiveness and good performance into the future, we need to shape and dimension our support organizations to this changing market environment. This will have an impact on many jobs, and unfortunately we cannot avoid redundancies."
At the beginning of 2010 Wärtsilä announced its plan to cut around 1,400 jobs globally and to move part of the manufacturing from Europe to China. It says the current round of job cuts is part of this overall plan.
Thus far this year, the company has shed 840 worldwide. At the end of September 2010 it had 17,704 employees compared with 18,541 at the end of 2009.