Wartsila to eliminate 550 jobs

APRIL 21, 2016 — With market conditions weakening in its equipment businesses and a marine market outlook that continues to be challenging, Wärtsilä says it plans to realign its organization, operations and resources to the weakened shipbuilding market situation and the tough competitive environment.

The realignment will mean the reduction of approximately 550 jobs, some 270 of them in Finland. Currently, Wärtsilä Marine Solutions employs 6,681 people globally and Wärtsilä Energy Solutions employs 958 people globally.

While these plans will mainly affect personnel in Marine Solutions' and Energy Solutions' global operations, common functions in the affected countries will also be reviewed.

Additionally, Wärtsilä plans to concentrate more of its engine related R&D activities in Finland with the aim of reducing development cycles.

Wärtsilä is looking for the measures to produce annual savings of around EUR 50 million. The effect of the savings will materialize gradually beginning from the second quarter of 2016, and will take full effect by the end of 2017. The costs related to the restructuring measures will be approximately EUR 50 million.

"These unfortunate capacity adjustments have to be made to maintain our competitive position in the global market. We will do our utmost to provide support for those individuals whose jobs will be affected by the streamlining. Our commitment to our customers remains solid," says Jaakko Eskola, President & CEO, Wärtsilä Corporation.

The effect of these adjustments will be specified when the consultation processes are initiated in the affected countries according to local practices and legislation.

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