NOKIA, Finland (Dec. 9, 2008)-Nokian Tyres P.L.C. has notified workers at its headquarters factory in Nokia it intends to cut about 450 jobs there as a result of decreased demand for tires.
The cuts would reduce employment at the 104-year-old factory to about 550 and cut output by a quarter to 4.5 million tires next year. The cuts would coincide with a change in the plant's working schedule to five days a week from a continuous, seven-day-a-week schedule.
Nokian said it has opened talks with labor representatives at the plant, as required by Finnish law. The aim is to carry out part of the cuts by pension arrangements and other voluntary solutions, Nokian said. Of the projected 450 job cuts, about 100 would be white-collar personnel.
The actions would cut Nokian's annual operating costs at the plant by about $39 million. The plant makes passenger, light truck, farm, OTR and industrial tires.
Once the markets recover, Nokian should be in a position to ramp up production rapidly again, according to Nokian CEO and President Kim Gran.
Word of the negotiations comes as the plant prepares for a three-week production hiatus starting Dec. 21.