KESLA has become the latest forestry manufacturer to announce it will lay-off workers as part of "restructuring". 

The Finland-based firm says as many as 25 people could be dismissed or asked to retire as it aims to cut 30 per cent of its workforce costs. 

Blaming the move on lower order levels than previous years, Kesla's bosses say they will begin negotiations with the "entire personnel" regarding the changes. 

Interim CEO Ilkka Miettinen said: "The value of the orders received remains on lower level than in the corresponding time of the previous year, and there is no clear change in demand for the better in the coming months. 

"The uncertainty of demand in market areas important to Kesla has continued as interest rates remain high and the geopolitical situation remains unstable." 

Kesla says the aim of the negotiations is to "streamline the organisational structure", which affects not only the number of personnel but also employee positions. 

Forestry Journal: Kesla provides a wide range of forestry equipment Kesla provides a wide range of forestry equipment

A statement from the firm added: "In the change negotiations, we cooperate with the personnel, in order to find the most suitable end result from the strategy perspective.

"In September 2023, the company announced a new strategy aimed at significant growth and improved profitability. This also means renewing the organizational structure and introducing new operating models and methods.

"Kesla estimates that the change negotiations will mean dismissal or retirement of a maximum of 25 persons. In addition, adjustment may mean temporary layoffs that are either shorter or valid until further notice."

As we have previously reported, manufacturers Ponsse and Rottne have been among the forestry brands to lay-off staff amid global difficulties in the market. The former could make as many as 140 workers redundant worldwide, with negotiations expected to be concluded by the end of May.