Valmet plans temporary layoffs in Finland amid capacity adjustments

FINLAND — Valmet, the global supplier of technologies and automation systems for the pulp, paper, and packaging industries, has announced plans to initiate change negotiations for temporary layoffs across several of its Finnish operations as it seeks to align capacity and improve cost efficiency.

The discussions, which will begin on 10 November 2025, will be held in accordance with Finland’s Co-operation Act.

More than 950 employees could be affected, primarily at facilities in Jyväskylä, Tikkurila (Vantaa), and Raisio.

The timing and extent of the layoffs will be determined through the negotiation process, with implementation expected in the first half of 2026.

According to Valmet, the move targets operations within its Packaging and Paper (P&P) business area and the Global Supply Unit, both part of its biomaterial solutions and services segment.

These units handle board and paper production technologies, services, procurement, and logistics.

“The aim is to ensure that our operations remain competitive and aligned with current market conditions,” Valmet said in a statement, noting that the adjustments reflect global demand fluctuations and ongoing efficiency drives in the pulp and paper equipment sector.

Valmet’s decision comes amid broader restructuring trends in Europe’s paper and packaging machinery market.

The company, which employs 19,000 people worldwide, including 6,000 in Finland, completed a similar round of negotiations in 2024 aimed at boosting profitability in its board and paper mills business.

Industry analysts say equipment suppliers have faced pressure from changing market dynamics, including slower demand for graphic paper machines, shifting investment toward fibre-based packaging lines, and increased automation in production processes.

Other industry players have taken comparable steps. In early 2025, Andritz implemented a phased workforce reduction across its European pulp operations, while Voith Paper streamlined its service network to focus on digital monitoring and predictive maintenance.

Metsä Group also temporarily reduced shifts at some Finnish paperboard facilities, citing weaker export demand.

Valmet emphasized that the planned layoffs are temporary and form part of a longer-term adjustment strategy to balance resources with demand.

The company continues to invest in growth areas such as biomaterial processing, circular economy technologies, and automation solutions designed to make paper and packaging production more sustainable and efficient.

Negotiations are expected to conclude before the end of 2025, setting the stage for implementation in early 2026.

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