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Outotec Oyj Initiates Efficiency Improving Measures; Plans to Cut Jobs

Thursday, 17 Oct 2013 02:40am EDT 

Outotec Oyj announced that it is introducing a program to improve its cost structure and operational efficiency to secure the future profitability in an uncertain market environment. The efficiency improvement program is targeting up to EUR 50 million annualized savings in operational costs by the end of fiscal year 2014 compared to the third quarter 2013 situation. The level of cost reduction activities and final savings will be subject to the development of the market environment and Outotec's order intake. The majority of the savings will materialize in 2014. The estimated one-time costs from the program for 2013 and 2014 will be at maximum EUR 30 million. Outotec is analyzing the resourcing needs and restructuring opportunities in its locations worldwide. The Company will start employee cooperation negotiations about possible reduction of workforce with the entire personnel. The effects of the considered restructuring on different personnel groups and locations will be determined on country basis by early 2014. The planned measures are estimated to lead to the reduction of maximum 500 employees globally through redundancies, retirements and discontinuing fixed-term agreements. The estimated need for redundancies in Finland is approximately 60 employees. The reduction measures will be realized gradually starting in late 2013 and ending by mid 2014. In addition, temporary lay-offs may be used to achieve the targeted savings. The Company employs approximately 5,000 persons. 

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