Škoda Transtech launches restructuring talks, up to 200 jobs at risk in Kajaani

Finnish rail vehicle manufacturer Škoda Transtech has begun restructuring negotiations that could cut up to 200 jobs—roughly a third of its workforce—at its Otanmäki plant in Kajaani, the company announced Monday.

The move follows prolonged uncertainty over Helsinki’s tram procurement tender, which Škoda Transtech lost to Swiss competitor Stadler in October 2025. The company had challenged the decision in both the Market Court and, as of March, the Supreme Administrative Court, arguing its bid was unjustly rejected.

Juha Vierros, Škoda Transtech’s CEO, confirmed the tender’s outcome as the primary driver for the talks, calling the Helsinki contract a “key project” that would have secured a significant share of the company’s workload. The Škoda Group parent company emphasized in a statement that the Nordic region remains a strategic market, with active bids underway across Scandinavia.

Beyond layoffs, negotiations will cover organizational restructuring, adjustments to working hours, roles, and responsibilities, as well as potential part-time arrangements. Mikko Komulainen, the plant’s chief shop steward, acknowledged the severity of the proposed cuts—affecting a workforce of over 20 nationalities—but noted no final decisions have been made under Finland’s co-determination law. “We’ll explore solutions to minimize reductions,” he said.

Kajaani, where Škoda Transtech is a major employer, has activated its “change security” services to support affected staff in collaboration with the company. Acting city manager Joni Partanen called the situation “deeply regrettable” but cited past experience—such as the closure of a local paper mill—as a framework for managing the transition. Services will include job placement assistance and guidance on retraining.