EMCC European Monitoring Centre on Change

Stora Enso

Company/Organisation:
Stora Enso

Geographic Location

Country: European Union
Location of affected unit(s): Finland; Sweden; UK; Germany

Company

Sector: Manufacturing
Manufacture of wood and paper products, and printing
17 - Manufacture of paper and paper products
Number Employed: 44000

Employment Effects

Announcement Date: 25-10-2007
Planned Job Reductions min: 1700
Planned Job Reductions max: 1700
Type of Restructuring: Bankruptcy/Closure
Direct Dismissals: 1700

Additional Information

Stora Enso, the Finnish manufacturer of pulp and paper, has announced that is to cut 1700 jobs across EU member countries. Job losses will be implemented in Finland, Sweden, UK and Germany. The firm will close sites in Finland and Sweden with the loss of 1,400 jobs. An additional 300 administrative positions, based in Finland, Sweden, UK, and Germany will also be cut by the firm. The firm has stated that the job cuts were announced ‘in response to dramatic cost increases and in order to safeguard long-term profitability’, and also cited the weakness of the U.S. dollar. Stora Enso Chief Executive Officer Jouko Karvinen has also stated that there may be further job losses and closures to follow. He said: ‘I can no longer just sit and wait for better times or for the strengthening of the U.S. dollar. We will have to respond to the reality of the situation we are in. If we do not manage to reduce raw material costs, we will have to take other measures. The situation is serious, as we are running out of time.’ As of October 2007, there is no information on when the job losses will be implemented by. Stora Enso employs 44,000 globally.