North Ostrobothnia welfare region launches mass layoff consultations affecting 18,000 employees

The North Ostrobothnia Welfare Region (Pohde) will begin co-determination negotiations covering its entire workforce of roughly 18,000 employees, citing a deteriorated economic situation, Yle reports.

The welfare region aims to cut personnel costs by approximately €30 million in 2027 through restructuring measures. Additional cost-saving actions will be required to balance the budget, according to Pohde’s statement.

Preliminary estimates indicate a need to reduce staffing by 500 full-time equivalent positions. The cuts will primarily target managerial, specialist, administrative, and support roles, with minimal impact on frontline patient and client services.

Possible measures include voluntary retirements, non-renewal of fixed-term contracts, layoffs, furloughs, and reduced working hours. Changes may also affect work locations, schedules, pay structures, and job descriptions.

State funding for Pohde is projected to increase by just 1.6% in 2027—below the expected rise in wage and procurement costs. Parliament recently approved legislation allowing welfare regions to extend the timeline for covering accumulated deficits. Pohde may receive a one-year extension, with deficits required to be eliminated by the end of 2027.

Negotiations are set to begin on June 22.