Raute to initiate change negotiations on possible temporary layoffs of up to 90 days in the Analyzers and Wood Processing business units in Finland

RAUTE CORPORATION PRESS RELEASE SEPTEMBER 3, 2024, at 9.00 A.M.

Raute to initiate change negotiations on possible temporary layoffs of up to 90 days in the Analyzers and Wood Processing business units in Finland

Raute's order backlog is currently at a high level, especially thanks to large mill-sized orders received in 2023. However, Raute's market environment in 2024 has been challenging in the Analyzers and Wood Processing business units, and thus the new order intake has been at a modest level during 2024. Consequently, we estimate that towards the end of the year the workload will clearly decrease in certain parts of our delivery organization, as the timing of order backlog deliveries affects the workload in different functions of our organization in different cycles.

To adjust capacity to the temporary decrease in workload in certain parts of our delivery organization and to achieve cost savings, Raute Corporation has started change negotiations on possible temporary layoffs in the Analyzers and Wood Processing business units in Finland. The change negotiations concern all Finnish offices in Raute Corporation and Hiottu Oy. The negotiations cover a total of approximately 416 people.

The potential need for layoffs is a maximum of 90 days, and the layoffs would be implemented in the remaining months of 2024 and the first half of 2025. The extent and duration of temporary layoffs depend on the development of the new order intake in the near future and its impact on the workload of individuals and departments. Possible layoffs may affect the entire personnel within the scope of the negotiations and all personnel groups.

FURTHER INFORMATION:
Mr. Mika Saariaho, President and CEO, tel. +358 40 154 9393

DISTRIBUTION:
Main media, www.raute.com  
 

RAUTE IN BRIEF - Making Wood Matter
Raute is the partner to future-proof the wood industry. Our technologies cover different production processes with supporting digital and analytics solutions for engineered wood products. Additionally, we offer full-scale service concept ranging from spare parts to regular maintenance and modernizations. Our innovative hardware and software solutions are designed to support our customers’ efficient consumption of natural resources. In mill-scale projects, Raute is a global market leader both in the plywood and LVL industries. Raute’s head office and main production is located in Lahti, Finland. The company’s other production plants are located in Kajaani, Finland, the Vancouver area of Canada, Changzhou, China, and in Pullman, WA, USA. Raute’s net sales in 2023 were EUR 145.4 million. The Group’s headcount at the end of 2023 was 754. More information about the company can be found at www.raute.com.