Outokumpu has completed its employee negotiation processes which were started in selected operating countries in November 2020 with the aim to create cost savings by restructuring and reducing total employee headcount by up to approximately 1,000. As a result of the negotiations, Outokumpu is reducing the employee headcount by 250 in Finland, 230 in Germany and 170 in Sweden. Additionally, further personnel reductions are in progress in the company’s European and Americas based operations, with reduction of approximately 250 employees already being implemented. The total targeted employee headcount reduction of 1,000 will be completed in full, mostly by the end of 2021. Outokumpu targets to have a headcount of below 9,000 during 2022.
Outokumpu said “Due to the challenging market situation with continuing high import pressure in Europe and the COVID-19 pandemic impacting the global economy, it is crucial to ensure the company’s cost competitiveness by reducing fixed costs, of which personnel expenses are significant part.”
The reductions are part of Outokumpu’s actions for reaching the financial targets of the first phase of its strategy: EUR 200 million EBITDA run-rate improvements and net debt to EBITDA of below 3.0x by the end of 2022. The personnel reductions are expected to generate total annual savings of approximately EUR 70 million, thereof EUR 60 million direct personnel cost. The costs of the restructuring are EUR 75-80 million. Such costs are adjusted for and EUR 11 million were booked in Q3/2020, approximately EUR 55 million are to be booked in Q4/2020 and approximately EUR 10 million in 2021, whereas cash out is expected predominantly during 2021.