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 April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Taiwan's Yang Ming Marine to Add Bigger Vessels to its Fleet

Yang Ming Marine Transport Corporation, Taiwnanese global shipping and logistics services company,  will take delivery of 14 large-sized ships over the next two years,

Hapag-Lloyd Adds North Europe-USEC Service

Hapag-Lloyd will open a new weekly service between North Europe and the US East Coast, the company said in its press release.     The new route – to be christened

Khamenei Says Iran Nuclear Weapons are a U.S. "Myth"

Iran's Supreme Leader Ayatollah Ali Khamenei told military commanders on Sunday the United States had created the "myth" of nuclear weapons to portray Iran as a threat,

Finance

China Shipbuilders may Merge to Stay Afloat

The China's four state-run shipping-related companies  are reportedly in the initial phases of combining units in order to beef up the national shipbuilding industry, says local media.

Seaspan Takes Delivery of New Containership

Seaspan Corporation (SSW) has accepted delivery of a 14000 TEU containership, the YM Wellhead.    The new containership, which was constructed at Hyundai Heavy Industries Co.

'Make in India’ - the Newbuzzword in Indian Shipping Sector

The Prime Minister Narendra Modi's  'Make in India’ initiative offers a plethora of opportunities in the maritime sector, particularly in shipbuilding, with the

Marine Power

Taiwan's Yang Ming Marine to Add Bigger Vessels to its Fleet

Yang Ming Marine Transport Corporation, Taiwnanese global shipping and logistics services company,  will take delivery of 14 large-sized ships over the next two years,

USN Names Littoral Combat Ship

Secretary of the Navy Ray Mabus announced today that the next Freedom-variant littoral combat ship (LCS) will be named USS St. Louis. The future USS St. Louis,

2 Damen Tugs for KOTUG’s European Harbor Towage

Damen Shipyards Group delivered two sister tugs ATD 2412 ‘ZP Bison’ and ‘ZP Bear’ to strengthen KOTUG’s European Harbour Towage. On April 8th 2015, the sister

 
 
Maritime Contracts Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | 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: 0.4278 sec (2 req/sec)