AROUND 140 jobs are at risk as manufacturer Ponsse looks to make annual savings of €10 million.
The firm has set out plans to "renew its operating model globally", saying the current system is "not sustainable". It aims to focus on "sales and service" in five key market areas, including Europe and North America.
While the plans are yet to be finalised, Finland is likely to be worst hit by the move, with staff at Ponsse's HQ now invited to enter into "change negotiations". Officials say it could lead to a reduction of around 50-60 roles, while others may face a two-week lay-off. Factory staff are exempt from this current round of restructuring.
READ MORE: Rottne and Ponsse confirm layoffs to factory workers
At the time of writing, it is unclear if any jobs in the UK are at risk.
A Ponsse statement read: "Due to the plans to renew the operating model and related changes, Ponsse is inviting its Finland based salaried and senior salaried personnel to change negotiations. The negotiations concern the planned operating model and adjustment measures due to the changes in operating environment.
"The estimated impact in Finland may concern a maximum reduction of 50-60 roles, with the potential creation of new roles, potential changes in the job terms and conditions and a maximum two-week lay-off for personnel affected by the change negations during 2024.
"If approved at a local level, the changes are likely to come into effect from June 2024, with the savings set to take place from 2026 onwards."
The statement added: "According to initial estimates, the planned measures could result in the reduction of approximately 120-140 jobs globally, additionally new roles could be generated. The planned measures could result in total annual savings of app. 10M€ from 2026 onwards."
Ponsse says it is making the changes because its current operating model does "not support global ways of working" and the "cost structure" is unsustainable.
A leadership shake-up at the firm has been proposed, under the following departments:
- Sales & Service organisation, including market areas, led by Marko Mattila
- Technology & R&D, led by Juha Inberg
- Digital Services & IT, led by Miika Soininen
- Operations inc. Supply Chain, Procurement and Logistics, led by Tommi Väänänen
- Service Excellence, led by Tapio Mertanen
- Finance, by Petri Härkönen
- People Safety & Culture, led by Tiina Kautonen
- Responsibility & Environment, led by Katja Paananen
Juho Nummela would remain president and CEO under the new structure.
The Ponsse statement added: "With this potential new operating model for the future, Ponsse wants to ensure an even better customer focus and a globally harmonised and efficient operations and creating sustainable organisation for the future. This potential planned change would apply across the Ponsse organisation.
"The current operating model does not support global ways of working and the cost structure of the current model is not sustainable."
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