UPM Fibres Initiates Change Negotiations, Potential Layoffs Looming

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UPM Fibres, a major player in the pulp and timber industry, has announced plans to restructure its operations in Finland to enhance efficiency and maintain profitability.

The company has begun change negotiations that could potentially impact up to 1,600 employees across its Finnish pulp, forest, and timber operations.

The restructuring measures include:

  1. Workforce Reduction: UPM Fibres is considering the elimination of approximately 110 positions.
  2. Temporary Layoffs: The company may implement temporary layoffs in its pulp and timber operations in Finland. These layoffs could occur between January 1 and June 30, 2025, lasting up to 90 days in total.

The change negotiations encompass UPM Pulp operations in Finland, UPM Forest, and UPM Timber. This move follows the company's recent centralization of its Finnish production operations under a new organization called Fibres Finland Operations, effective October 1, 2024.

UPM's decision to restructure comes amid challenging market conditions in the pulp and paper industry. The company aims to safeguard its profitability by increasing operational efficiency.

UPM Fibres consists of UPM’s pulp and timber businesses as well as wood sourcing and forestry operations. UPM Pulp has three pulp mills in Finland and two pulp mills and plantation operations in Uruguay. UPM Timber operates four sawmills in Finland. UPM Forest secures competitive wood and biomass for the UPM businesses, manages UPM-owned and privately owned forests in Northern Europe and offers forestry services to forest owners and forest investors.