Raute initiates negotiations for potential layoffs affecting over 400 employees in Finland

Finnish wood technology company Raute is initiating negotiations regarding potential layoffs of up to 90 days in Finland. The discussions will focus on its Analyzers and Wood Processing business units. The Analyzers unit produces automation systems for wood processing plants, while the Wood Processing unit manufactures actual production equipment.

In addition to operations in Lahti, both units have locations across the country, including Oulu and Kajaani. The company has experienced a modest accumulation of new orders this year. CEO Mika Saariaho states that, despite this, the order backlog remains strong, as the company received a record number of new orders last year.

“This is typical for a company like ours. Currently, the workload is not evenly distributed, even though the order backlog is good,” Saariaho explained.

The layoff negotiations could affect over 400 employees, with potential layoffs expected to occur towards the end of this year and into the first half of next year. However, if the order volume increases, layoffs may be avoided. Raute’s largest unit is located in Nastola, near Lahti.