Metsä Group has announced the start of statutory negotiations across all its business areas and group operations as part of a major profitability and efficiency drive.
The move follows the completion of a €300 million cost savings and profit improvement programme, first revealed in July 2025.
According to preliminary assessments, the measures could result in the permanent reduction of up to 800 jobs, including 540 positions in Finland. Metsä Group currently employs around 9,600 people worldwide, of whom 5,600 are based in Finland. The planned reductions at Metsä Board, a listed subsidiary of Metsä Group, are included in these figures.
Addressing rising costs and weak demand
President and CEO Jussi Vanhanen said the group’s profitability has been eroded by weakened global trade, adverse exchange rate developments, and sharply higher raw material and operating costs. “We operate in a capital-intensive business in which lower utilisation rates combined with higher costs create an unsustainable equation that must be addressed,” he said.
The savings plan focuses on procurement, logistics, and the efficiency of the wood supply chain, which together represent a significant portion of the planned cost reductions. Additional restructuring and streamlining measures will target fixed and variable costs.
No plant closures planned
Despite the scale of the programme, Metsä Group confirmed that no permanent closures of production units are planned. Development projects in innovative business areas—including Muoto, Kuura, lignin and bio-based CO₂ capture—will continue according to schedule.
Statutory negotiations with employee representatives will be carried out in line with legislation in each country. While some employees may face redundancies, others could see changes in job duties.
Long-term competitiveness
Vanhanen praised employees for their efforts but underlined the need for change: “Our employees have done good work within our current operating model. Unfortunately, it isn’t enough in this situation. We must shape our operations to ensure long-term competitiveness.”
Provisions related to the cost savings and profit improvement programme will be recorded in Metsä Group’s fourth-quarter results.
Metsä Group, owned by over 90,000 Finnish forest owners, produces recyclable wood-based products including pulp, paperboard, tissue, and wood products. In 2024, it reported sales of EUR 5.7 billion and employed about 9,600 people worldwide.
