Wärtsilä, the Finnish engine maker, is planning to cut about a third of the workforce at its ship power business in an effort to save around €30m ($40.7m) a year.
The firm said it aimed to reduce the number of jobs by 400-450, of which about 80 would be in Finland, as a result of the “substantially weakened global marine market situation”.
Confirming the move today, Wärtsilä said the impact of the savings would “start to materialise gradually from the second part of 2009 and will take full effect by the end of 2010”.
Wärtsilä planned to start talks with staff today about the job cuts and rationalisation plans which it said would “affect all of Wärtsilä Ship Power’s personnel in all functions globally”. The ship power division employs around 1,300 staff, mainly in sales, engineering services, design and project management, in 30 countries.
Ship Power vice president Jaakko Eskola said: “The situation in the shipping industry has changed dramatically during the past six months, and we have taken all possible measures to avoid job cuts. As the market outlook continues to be very challenging, we must find cost-saving measures that ensure the organisation’s ability to maintain its competitiveness and efficiency, while at the same time, not jeopardising customer commitments."
Commenting on the impact from the slump in global newbuilding orders, Wärtsilä said new orders at the ship power operation crashed 86% to €135m between January and April compared with the same period last year.
The firm also warned that a further €1bn worth of existing orders were under threat, while €75m worth of deals were cancelled between January and April.
“Through personnel negotiations, Wärtsilä aims to adjust its ship power business to respond to the needs of its customer segments. The effect of these adjustments on different personnel groups will be specified as the negotiations proceed,” the company said.
The firm said it aimed to reduce the number of jobs by 400-450, of which about 80 would be in Finland, as a result of the “substantially weakened global marine market situation”.
Confirming the move today, Wärtsilä said the impact of the savings would “start to materialise gradually from the second part of 2009 and will take full effect by the end of 2010”.
Wärtsilä planned to start talks with staff today about the job cuts and rationalisation plans which it said would “affect all of Wärtsilä Ship Power’s personnel in all functions globally”. The ship power division employs around 1,300 staff, mainly in sales, engineering services, design and project management, in 30 countries.
Ship Power vice president Jaakko Eskola said: “The situation in the shipping industry has changed dramatically during the past six months, and we have taken all possible measures to avoid job cuts. As the market outlook continues to be very challenging, we must find cost-saving measures that ensure the organisation’s ability to maintain its competitiveness and efficiency, while at the same time, not jeopardising customer commitments."
Commenting on the impact from the slump in global newbuilding orders, Wärtsilä said new orders at the ship power operation crashed 86% to €135m between January and April compared with the same period last year.
The firm also warned that a further €1bn worth of existing orders were under threat, while €75m worth of deals were cancelled between January and April.
“Through personnel negotiations, Wärtsilä aims to adjust its ship power business to respond to the needs of its customer segments. The effect of these adjustments on different personnel groups will be specified as the negotiations proceed,” the company said.