Wärtsilä plans to reduce 400 jobs in its support functions

Wärtsilä Corporation, Press release, October 18, 2010 at 11.00 EET

Following an analysis of its support functions, Wärtsilä has decided to implement a global design for each function to support the businesses in the most efficient way. The analysis indicates that there are overlapping activities and a need to adjust organisations to a new way of working and to lower volumes. Wärtsilä will initiate processes to reduce approximately 400 jobs globally in its support functions and Information Management services.

Of these job reductions, approximately 130 are planned for Finland. The remaining reductions are planned to be carried out in 30 countries. The consultation processes will be initiated in the affected countries according to local practices and legislation.

In its Information management activities, Wärtsilä plans to establish strong competence centres in China and India to support its growing Asian markets.

“Although there are signs of recovery in the market, competition and price pressures will remain intense. To safeguard our competitiveness and good performance into the future, we need to shape and dimension our support organisations to this changing market environment. This will have an impact on many jobs, and unfortunately we cannot avoid redundancies”, says Raimo Lind, Executive Vice President & CFO

At the beginning of 2010 Wärtsilä announced its plan to reduce approximately 1,400 jobs globally and to move part of the manufacturing from Europe to China. The current plan regarding the support functions is part of this overall plan.

In the Netherlands, the consultation process has been finalised and the process to reduce 570 jobs, which includes the support functions, is proceeding according to plan. Also, in France a streamlining process that includes the support functions is ongoing.

All in all, the number of employees has reduced globally during 2010 by 840 people. At the end of September 2010 Wärtsilä had 17,704 employees (18,541 at the end of 2009).

Wärtsilä in brief
Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets. By emphasising technological innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2009, Wärtsilä’s net sales totalled EUR 5.3 billion with more than 18,000 employees. The company has operations in 160 locations in 70 countries around the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.

Wärtsilä Corporation, press release