Finnish mining and metal manufacturing equipment provider Outotec has announced that it will initiate an additional program to adapt its cost structure further, since its current cost savings program will not be sufficient given the current market outlook. The new cost structure program aims at €70 million annualized savings in fixed costs compared to the situation in the third quarter of the current year. The majority of the savings will materialize in 2016, and the program will not impact Outotec's financial guidance for 2015.
The measures are planned to include streamlining Outotec's organization, adjusting capacity, as well as reviewing the company’s site structure. The planned measures may lead to the reduction of a maximum of 650 permanent employees globally through redundancies and other arrangements. Discontinuing fixed-term agreements and temporary layoffs may also be used to achieve the targeted savings. In addition, the amount of manufacturing, site services and external workforce will be adjusted according to business needs.