Metsä Board wraps up Finnish layoffs amid push for greener packaging efficiency

FINLAND – Metsä Board, a leading producer of sustainable paperboard used in eco-friendly packaging, has finalized its change negotiations in Finland as part of a broader cost savings initiative. 

Launched on July 31, 2025, the program targets US$210 million in improvements to streamline operations and support long-term viability in the folding boxboard and white kraftliner markets.

The company started these negotiations on October 7, 2025, covering all staff across its global sites, with an initial estimate of up to 315 job cuts worldwide, including 155 in Finland.

The Finnish talks, which wrapped up recently, led to the elimination of 150 positions. Metsä Board also plans to reorganize certain roles and functions to sharpen its edge in delivering recyclable packaging solutions. 

These moves will trigger about US$12.6 million in one-off expenses, set to hit the comparable operating result in the fourth quarter of 2025. 

“We remain committed to our workforce while adapting to market realities,” said Ilkka Hämälä, President and CEO of Metsä Board, in a prepared remark. 

He added that the adjustments aim to keep the company agile in producing low-carbon board for brands shifting away from plastics.

Negotiations persist in other countries, following local rules, with details to follow once complete.

To match fluctuating demand for paperboard, driven by e-commerce and consumer goods sectors, Metsä Board may introduce phased temporary layoffs in 2026 at key Finnish mills. 

Sites in Kemi, Kyröskoski, Simpele, and Äänekoski could see interruptions of up to 90 days each, while Kaskinen and Joutseno might face longer pauses. 

Final decisions on the extent will depend on demand trends, which have softened due to economic pressures on packaging volumes.

This initiative fits into wider industry efforts to balance sustainability goals with financial pressures. 

Recent data from the European Paper Recycling Council shows paperboard recycling rates holding steady at 81% in 2024, helping firms like Metsä Board maintain appeal for circular economy projects. 

Hämälä noted indirectly that such efficiencies allow more investment in fiber-based innovations, like barrier coatings that extend shelf life without fossil-based materials.

The changes come as Metsä Board reports steady output at its mills, with the company’s Jussinkylä site in Finland ramping up production of lightweight boards for food packaging.

These boards reduce material use by 10-15% compared to traditional options, aiding clients in meeting EU single-use plastic directives. 

Overall, the program seeks to cut variable costs by 5-7% annually, ensuring resources flow toward R&D in biodegradable alternatives. 

Analysts expect these steps to stabilize earnings, with the company forecasting a 2-3% rise in sustainable packaging demand through 2026.

In a related development, Stora Enso, a peer in the Nordic pulp and paper sector, announced similar efficiency measures last month, trimming 200 roles across its operations to redirect funds toward lignin-based packaging films. 

That move, valued at US$158 million, includes US$9.3 million in restructuring charges for Q4 2025. 

“Efficiency is key to scaling green tech,” a Stora Enso spokesperson stated, echoing sentiments in the sector. 

Metsä Board’s actions highlight how European leaders are navigating low-demand cycles while advancing zero-waste goals, with temporary measures providing flexibility without permanent disruptions.

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