Tuesday April 16, 2024

75 to lose jobs, 800 affect as Terrafame starts negotiation talks

Published : 22 Feb 2024, 00:49

Updated : 22 Feb 2024, 00:51

  DF Report
File Photo: Terrafame.

State-owned mining and multi-metal company Terrafame on Wednesday has taken an initiative to hold negotiation talks with the view to reduce employees as a part of a profitability programme to save EUR 10 million annually.

The negotiations will affect all of more than 800 employees of the company and according to the initial estimate, the maximum personnel reduction need would be in total 75 person-years, said Terrafame in a press release.

The possibility of layoffs is also considered in the negotiations.

According to the company, it follows a model of continuous improvement, actively seeking ways to enhance its profitability.

The challenges seen in the electric vehicle market in 2023, especially in the Chinese market, have also affected Terrafame’s battery chemicals business.

Terrafame has decided to initiate a profitability programme, aiming for EUR 10 million in annual savings. The goal is to improve the company’s international competitiveness and profitability.

The company is currently implementing significant investment programmes, which are necessary for the continuation of its operations and particularly related to the construction of the new secondary leaching area.

“To ensure financially sustainable business operations in the future, it is vital for Terrafame to take necessary savings measures – our new business operations must also be efficient and profitable as the market situation changes,” said Seppo Voutilainen, interim Chief Executive Officer of Terrafame.

The aim of the change negotiations between the company and the personnel is to find a solution for adjusting personnel resources, working time patterns and general work arrangements to better meet the needs of the company.

The negotiations will begin without delay and are estimated to last until at least early April 2024 in accordance with the legislation and collective agreements.