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Valmet Initiates Temporary Layoff Negotiations

Valmet, the global technology leader in serving process industries, has recently announced its decision to commence change negotiations in Finland. In accordance with the Finnish Co-operation Act, these discussions will formally begin on May 4, 2026. The focal point of this negotiation is a proposed plan for temporary layoffs that may last less than 90 days.

The proposed temporary layoffs are linked to specific sectors within Valmet that include Packaging and Paper, as well as Pulp, Energy, and Circularity business areas, in addition to certain operational functions. Should the plans proceed, these layoffs are expected to be in effect from June to December 2026. This move is deemed necessary to align the company's operational capacity with a workload that has been lower than initially anticipated.

Reasons Behind the Layoffs

The rationale for these layoffs stems from a combination of factors. Firstly, there are significant delays in customer-driven projects, which have led to a weaker demand in key markets such as paper and board machines. Furthermore, there has been a steady decline in the demand for biomaterials services, creating an urgent need for Valmet to reassess its workforce. By implementing these adjustments, Valmet aims to safeguard its profitability and enhance its competitiveness in a rapidly changing market.

The cost implications of this decision are significant; it is projected that these temporary measures could result in savings of approximately EUR 8 million by the end of 2026. During the negotiations, the company plans to discuss the full scope of these measures, which may involve around 2,400 employees from diverse worker groups across various Valmet facilities in Finland.

Valmet's Commitment and Future Outlook

Despite this challenging situation, Valmet remains committed to its workforce. The negotiations will define the final scope and implementation timeline of any decisions that will be made concerning layoffs. The company emphasizes that these layoffs are temporary in nature and are a strategic decision aimed at navigating through difficult market conditions while securing long-term sustainability.

As of now, Valmet employs approximately 18,500 people globally, with around 5,900 of those workers located in Finland. The company is well recognized for its advanced technologies and services, and its expertise spans nearly 225 years in industrial operations. Valmet's outlook for the future, following these negotiations, hinges on its ability to adapt to market demands and evolve its business strategies accordingly.

In conclusion, while the prospect of employee layoffs is undoubtedly challenging, Valmet's strategic approach aims to realign its resources effectively in response to market shifts. As the negotiations proceed, it will become clearer how these changes will shape the company's direction in the coming months. Valmet is dedicated to its employees and will navigate this transition in a manner that prioritizes its overall sustainability and growth potential in the industry.

For more information about Valmet and its operations, please visit valmet.com.