Metsä Group to begin statutory negotiations to improve profitability and efficiency

Metsä Group will launch statutory negotiations across all its business areas and operations. According to preliminary assessments, the planned measures could lead to a permanent reduction of 800 jobs if implemented.

On July 31, 2025, Metsä Group announced the start of planning for a €300 million cost-saving and profit-improvement program. The planning phase has now been completed, and as part of this program, the company will begin statutory negotiations concerning its personnel.

The company’s profitability has been affected by three main factors: growing uncertainty in global trade, exchange rate fluctuations, and increased raw material and general costs, which have eroded financial results. Jussi Vanhanen, President and CEO of Metsä Group, stated: “We operate in a capital-intensive industry where lower capacity utilization combined with higher costs creates an unsustainable equation that must be addressed.”

In designing the savings program, particular attention was paid to procurement and logistics costs, as well as to the efficiency of the wood supply chain, which represent a significant share of the planned savings. Measures were also identified to optimize operations, reduce fixed costs, and improve variable cost efficiency.

 

Vanhanen commented: “Our employees have done a good job within our current operating model. Unfortunately, it is not enough in this situation. We must optimize our operations to ensure long-term competitiveness.”

It is estimated that a significant portion of the reductions—approximately 540 positions—will take place in Finland. In addition to layoffs, changes to employee roles may also be implemented. The negotiations will be conducted in accordance with the labor laws of each country. Metsä Group employs approximately 9,600 people worldwide, 5,600 of whom are based in Finland.

The negotiations do not include the permanent closure of production units. The development of the Group’s new business projects, including Muoto, Kuura, lignin, and bio-based CO₂ capture, will continue as planned. Provisions for expenses related to the program will be reflected in the company’s results for the last quarter of the year.