EMCC European Monitoring Centre on Change

Outokumpu

Company/Organisation:
Outokumpu

Geographic Location

Country: Finland

Company

Sector: Manufacturing
Manufacture of basic metals and fabricated metal products, except machinery and equipment
24.1 - Manufacture of basic iron and steel and of ferro-alloys
Number Employed: 2502

Employment Effects

Announcement Date: 22-12-2020
Planned Job Reductions min: 250
Planned Job Reductions max: 250
Type of Restructuring: Internal restructuring
Foreseen End Date: 30-06-2021

Additional Information

Finnish steel company Outokumpu announced that it will cut about 250 jobs in Finland. Majority of the job cuts will be done in Outokumpu’s production units in Tornio and its mine in Kemi. Both of these cities are located in northern Finland. All employee groups are affected by the job cuts.

The announced job cuts in Finland are part of Outokumpu’s wider plan to cut approximately 1,000 jobs worldwide by the end of 2021. According to the company, restructuring is needed due to the impact of the COVID-19 on the steel sector. The company expects these job cuts to generate cost savings accounting for €70 million.

Shop steward of Outokumpu’s production units in Tornio argues that the company’s decision is disappointing and that the proposals made by the employees were not taken into consideration.

Outokumpu has approximately 10,000 employees worldwide, while at the beginning of 2020 it employed 2,502 people in Finland.

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