Päijät-Häme welfare region seeks extra time for savings, plans hundreds of job cuts

The Päijät-Häme welfare region in Finland has submitted a request to the Ministry of Finance for an extension to cover its deficit, with a plan that includes cutting hundreds of jobs, reports Yle.

The regional council decided in a meeting on Monday that the largest staff reductions will begin in 2028, with all savings to be implemented by 2029 at the latest. A proposal by the Centre Party to delay the cuts until 2028 won over an alternative that would have started reductions in 2027.

The welfare region must tighten its budget nearly twice as much as originally planned, with a deficit of €90.2 million accumulated. The need for additional savings for 2028 has now risen to €23 million.

If the Ministry of Finance does not grant the extension, the state may place the region under a financial assessment procedure, limiting its autonomy over financial decisions. Welfare region director Petri Virolainen noted that Päijät-Häme already meets all criteria for such a procedure.

According to financial director Antti Niemi, the plan for 2028 involves reducing personnel costs equivalent to 350 full-time positions, though savings may also be achieved through other means, potentially reducing the need for such extensive staff cuts.