Citing the “weakened newbuild market situation and the tough competitive environment” engine maker Wärtsilä is making further cuts its global headcount. 270 of the planned 550 job cuts this time round will take place on home soil in Finland, the company said in a release today. The latest round of cuts are designed to save the firm up to EUR50m a year.
“The market conditions have weakened in Wärtsilä’s equipment businesses. Despite the somewhat improved sentiment in the power generation markets, the competitive environment remains tough. Furthermore, the marine market outlook continues to be challenging due to the combined effect of overcapacity of merchant ships, and a continued lack of demand in the offshore segment. In addition, there are risks related to vessel owners negotiating extensions to existing delivery contracts,” the company said in a release.
“These unfortunate capacity adjustments have to be made to maintain our competitive position in the global market,” said Jaakko Eskola, president and CEO of Wärtsilä.
