Helsinki, October 2, 2025 — Finnish forest industry company Metsä Group has announced extensive co-determination negotiations covering all of its business areas and corporate functions. According to the company, the talks could result in the permanent reduction of around 800 positions globally, including approximately 540 in Finland.
Metsä Group, which employs about 9,600 people worldwide — 5,600 of them in Finland — said the negotiations are part of a previously announced €300 million cost-saving and performance improvement program.
Chief Executive Officer Jussi Vanhanen stated that profitability has weakened on three fronts: global trade uncertainty reducing demand for products, currency fluctuations eroding results, and rising raw material and overall cost levels.
At the same time, Metsä Board — a listed company within Metsä Group — confirmed that it will begin its own co-determination process covering slightly more than 2,000 employees, effectively its entire workforce. The talks may lead to the termination of up to 315 jobs, 155 of which are in Finland.
Metsä Board said the planned cuts are driven by productional, financial, and operational restructuring needs. The company aims to adjust its cost structure, improve cash flow, and increase efficiency to strengthen its long-term growth potential.
In addition, Metsä Board will suspend two major investment projects deemed unprofitable in the current market environment: the modernization of the drying machine at the Husum pulp mill and the barrier board development project at the Kyro mill. Another project involving the conversion of the Husum BM2 board machine in cooperation with Metsä Tissue will not proceed beyond its pre-engineering phase, which is scheduled to be completed by year-end.
“Challenging market conditions require consistent and effective measures,” said Esa Kaikkonen, CEO of Metsä Board. “Adjusting our cost structure and improving efficiency are necessary to restore profitability to a sustainable level. At the same time, we are strengthening our long-term competitiveness and growth opportunities. The improvement in cash flow has already produced results, and throughout this process, our goal is an open and constructive dialogue. We are committed to supporting our employees in the best possible way.”
