Ioncor to lay off 125 workers in Salo and Uusikaupunki

Battery manufacturer Ioncor will cut 125 jobs across its plants in Salo and Uusikaupunki, the company confirmed Friday, citing reduced demand for contract-manufactured battery systems as car sales decline.

The layoffs follow collective bargaining negotiations that began in late March, with initial estimates suggesting up to 145 positions could be eliminated. Of the 125 affected workers, 103 are production staff, 11 are mid-level employees, and 11 hold senior roles, communications director Mikael Mäki told Yle in an email. The company declined further comment.

Ioncor employs roughly 1,100 people across six sites in Finland and Germany, with the Salo plant—where staff numbers will drop by a fifth—previously housing over 500 workers and Uusikaupunki nearly 200. Both facilities produce battery systems under contract for automakers, while also preparing to launch serial production of their own designs for heavy-duty vehicles, utility trucks, and mobile machinery.

The company last reduced its workforce over a year ago. Earlier reports on the negotiations were first published by Salon Seudun Sanomat.