Hard times also for personnel
As a response to the very weak demand for stainless steel Outokumpu took a number of actions to adjust to the poor market conditions. Production was cut back heavily and consequent adjustments of personnel numbers through both temporary and permanent layoffs were implemented.
In Finland, the low order load resulted in temporary layoffs for most employees at the Tornio Works. Some 250 employees at the Kemi Mine and the ferrochrome plant were temporarily laid off from March until the end of September. Approximately 1 600 employees working on other steel production lines, maintenance and support functions were temporarily laid off in sequences starting from March. In September, some 700 employees were taken back and the remaining 900 who had been laid off temporarily returned to work in October. All head office employees (some 150) located in Finland were temporarily laid-off for ten days during the spring 2009. Some 50 permanent job reductions were made in Finland in 2009.
In Sweden, a total of some 400 job reductions were made in 2009. The number of working shifts was reduced and related temporary lay-offs were implemented. In the UK, the closure of Sheffield Special Strip, reduced production in the Sheffield melt-shop and actions taken in the service centre and the sales company resulted in approximately 350 job reductions and temporary adjustments due to reduced working shifts. Approximately 150 job reductions were implemented in other countries.
Altogether actions taken included temporary lay-offs affecting more than 2 000 people and some 900 permanent job reductions, being the main contributor to the Group fixed costs being reduced by some EUR 185 million in 2009. Outokumpu follows local laws and regulations also in job reductions and lay-offs.