In anticipation of continuing weak market, especially in capex investments, Outotec has initiated an additional program to adapt its cost structure further, which aims to reduce spending by EUR 70 million per year.
Approximately two-thirds of the savings are expected to be coming from “personnel costs.” Outotec will streamline its organization, adjusting capacity, as well as reviewing the site structure. As many as 650 permanent employees worldwide could be displaced. In addition, the amount of manufacturing, site services and external workforce will be adjusted according to business needs.
“The global market in minerals and metals processing has further weakened during recent months. Therefore, we need to adjust our operations and improve our cost structure correspondingly. The actions we need to take are tough but necessary to ensure our competitiveness in the challenging market,” said Outotec’s CEO Pertti Korhonen. Outotec currently employs approximately 5,000 people.