Wärtsilä to Shed 1,000 Staff in Global Efficiency Shake Up

MarineLink.com
Wednesday, January 29, 2014
Image courtesy of Wärtsilä

The Group-wide efficiency programme is expected to lead to a reduction of approximately 1,000 employees globally, of which about 200 are planned to be in Finland, in a move to secure future profitability and competitiveness. Wärtsilä add that the reductions will impact all businesses and support functions.

The company explains that despite some signs of improvement in market conditions, the business environment remains challenging. Vessel contracting activity is expected to remain at improved levels, but overcapacity and price pressure is still a concern. Uncertainties in the global economy have caused delays in power generation market activity. The service market development remains stable. The volatility in the market demand has increased and Wärtsilä is adapting its organisation to this reality. The synergies that were identified in the merger of the Ship Power and PowerTech organisations are also being implemented.

With these actions Wärtsilä says it seeks annual savings of EUR 60 million. The effect of these savings is expected to materialise fully by the end of 2014. The non-recurring costs related to the restructuring measures will be EUR 50 million. Of these costs EUR 11 million was recognised in 2013, as certain measures were initiated at the end of the year.

"In an environment of slow growth and intense competition, we must take steps to adjust our cost structure accordingly. Only by increasing the efficiency and flexibility of our organisation globally can we secure profitability and maintain competitiveness going forward. Unfortunately redundancies cannot be avoided," says Björn Rosengren, President & CEO.
 
The planned reductions are subject to consultation processes, which will be initiated in the affected countries according to local practices and legislation. The company will provide support and consultation as well as assistance in re-employment in the impacted countries.
 
At the end of 2013, Wärtsilä says it had 18,663 employees in nearly 70 countries globally.
 

 

Maritime Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Piraeus Port Posts Flat Profit, Sales Dip

Greece's Piraeus Port (OLP) , the largest in the country, said its first-half net profit was almost unchanged from the same year-ago period, while sales fell. Piraeus Port,

Hyde Marine to Display Ballast Water Tech at SMM

Hyde Marine, Inc., a ballast water treatment technology company, will showcase its Hyde GUARDIAN Gold HG250G Ballast Water Treatment System (BWTS) at the upcoming Shipbuilding,

Report: Ports Lack Maintenance Support

The latest Barometer Report from Trelleborg has revealed a huge gap in the maintenance requirements of port owners and operators, and the support that suppliers are able to provide.

Finance

Piraeus Port Posts Flat Profit, Sales Dip

Greece's Piraeus Port (OLP) , the largest in the country, said its first-half net profit was almost unchanged from the same year-ago period, while sales fell. Piraeus Port,

Panama Canal: The Billion Dollar Challenge

Panama Canal expansion will cost operators, insurers As the Panama Canal prepares to celebrate its 100th anniversary, insurers are warning of the increased risks

Wishful Thinking From Across the Pond

European Shipowners Pursue Softening of the Jones Act Just last month, the Secretary General of the European Community Shipowners’ Association (ECSA) opined that

Marine Power

First N.American Boat Powered by Volvo Penta IPS

Thomas Paine, the new 50-ft. aluminum patrol boat that joined the Massachusetts Environmental Police fleet in July, is the first commercial vessel in North America

WR Launches On-stack Scrubber Emission Monitor

WR Systems (WR), the U.S.-based maritime technology company, is launching a new variant of its laser-based-emissions monitor at the SMM 2014 Fair in Hamburg. Called the Emsys-iS,

CMR Debuts Engine Supervision and Management Software

CMR Group has introduced a new Integrated Alarm Monitoring and Control System (IAMCS) for marine and naval engine applications which it said provides technologically-advanced

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Navigation Pipelines Port Authority Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1968 sec (5 req/sec)