Raute plans up to 50 job cuts as operating profit halves

Lahti-based Raute is seeking four million euros in savings by the end of 2027 and will begin change negotiations affecting its entire Finnish workforce, Yle reported. The company makes technology and provides services for the wood-products industry.

The negotiations cover about 522 employees in Finland and could lead to redundancies, furloughs, changes to employment terms or part-time work. Raute estimates that up to 40 positions could be cut in Finland and up to 50 worldwide. It also aims to achieve some savings through retirements and internal job changes.

Raute said its comparable operating profit for January to September was 7.7 million euros, down more than 50 per cent from the same period last year. Revenue fell to 95.4 million euros from nearly 140 million euros.

A 31 million euro contract signed in the third quarter for an expansion of a plywood mill in Estonia boosted orders, but the company said its order intake overall remained low. Chief Executive Mika Saariaho said weak demand among customers, many of them in the construction industry, had affected Raute’s business.

The savings programme will include a review of the company’s structure, management, resource allocation, purchasing, systems and efficiency. Raute is also considering combining three business units into two.

The company has furloughed staff in recent years. Saariaho said ongoing furloughs do not serve the interests of either the company or its employees, and that Raute needs to make clearer decisions about where to invest and where to cut costs. He said the company wants to be ready for a recovery in construction and markets, which he expects to bring an increase in orders.