Finnish engineering company Valmet is set to begin change negotiations in Finland, potentially leading to temporary layoffs for approximately 2,400 employees. The measures are planned to address a decline in workload and safeguard profitability.
What happened
Valmet will initiate change negotiations on May 4, 2026, in accordance with the Finnish Co-operation Act. These negotiations cover approximately 2,400 employees across various locations and business groups in Finland, including parts of the packaging and paper, and pulp, energy and circularity business areas, along with certain functions and the global supply unit. The proposed measures may include temporary layoffs of less than 90 days, which would be implemented between June 2026 and the end of December 2026.
How many employees affected
Approximately 2,400 employees in Finland are covered by these negotiations. Valmet employs around 5,900 people in Finland, representing about 40.68% of its Finnish workforce potentially affected. Globally, Valmet has approximately 18,500 employees.
Why layoffs happened
The planned actions aim to safeguard profitability and competitiveness by adapting capacity to a lower-than-anticipated workload. This reduction is attributed to customer-driven project delays, continued weak demand in paper and board machine markets, and ongoing softness in biomaterials services markets. The measures are projected to result in cost savings of approximately €8 million ($9.36 million) during 2026.
Company background
Valmet is a Finland-based engineering company. It has a global presence, employing approximately 18,500 people worldwide, including 5,900 in Finland. The company operates in sectors such as packaging and paper, and pulp, energy and circularity.
Industry impact
The provided sources focus on Valmet's internal restructuring and do not detail broader industry-wide impacts beyond the company's specific market conditions.
What's next
The final details regarding the scope, timing, and implementation of any measures will be determined during the ongoing negotiation process. The potential temporary layoffs would be implemented from June 2026 until the end of December 2026.