Finnish building systems developer and industrial services provider Caverion announced that it will cut 500 jobs worldwide by the end of June 2021 as a part of a major saving scheme. The restructuring programme, which includes staff reduction, reorganisation and operating model development, will affect all Caverion’s locations, with a minor impact on Finland and Austria. A large part of the reductions is planned to be carried out by the end of 2020.
The President and CEO of the company said that 'the reductions are very unfortunate but still necessary to secure our competitiveness in the future'.
The company is to adjust its operations due to the economic downturn resulting from the COVID-19 pandemic. The savings resulting from cost-cutting measures are estimated to total at least €25 million for 2021. The company estimates the restructuring costs will total approximately €10 million in the fourth quarter of 2020. Some of the savings are expected to be used to grow digital and smart technology businesses in all divisions of the company.
Caverion operates in 10 European countries: Austria, Denmark, Estonia, Finland, Germany, Latvia, Lithuania, Norway, Russia and Sweden.