Newly established regional vitality centres across Finland begin layoff negotiations

Newly formed regional vitality centres in Finland have begun co-operation negotiations that could lead to staff redundancies, Yle reports. The centres, which replaced the former Centres for Economic Development, Transport and the Environment (ELY Centres), only launched operations this January.

At least four centres—Southeastern Finland, Uusimaa, Southwest Finland, and Inland Finland—announced on Monday that they are initiating negotiations due to financial and operational reasons. The talks may result in layoffs affecting 32 employees in Southeastern Finland, 33 in Southwest Finland, eight in Uusimaa, and 16 in Inland Finland.

Earlier in February, the Lapland centre also announced negotiations involving 150 employees. Combined, the centres and the Finnish Environment Institute (KEHA) could reduce staffing by nearly 300 full-time positions.

The negotiations are proceeding in two phases. The first involved nationwide discussions at the start of the year, while the second consists of centre-specific talks based on proposals submitted this spring.

The ten regional vitality centres were established as part of the government’s regional administration reform, replacing the ELY Centres. Despite cost-cutting measures, their operational budgets remain insufficient to cover expenses, necessitating workforce reductions.

Budget cuts to the predecessor ELY Centres began in summer 2024 as part of a national productivity programme, further straining finances.