'Temporary layoffs' part of Nokian cost-saving measures

NOKIA, Finland—In anticipation of "significant additional operating costs" this year, Nokian Tyres P.L.C. is implementing several cost-cutting strategies, including job cuts.

The increased costs Nokian faces are part of ongoing investments in research and development efforts, recruitment for the Dayton, Tenn., factory and IT improvements, CEO and President Hille Korhonen said.

Nokian also has focused on efficiency improvements and adjusting cost base in the second quarter.

"We have been doing some savings in other operational activities, and also we have been adjusting the capacity in our Finnish factory in Nokia to lower demand through temporary layoffs," Korhonen said.

The efficiency measures include structural changes in the Nordics region, combining the tire maker's Norwegian and Swedish organization.

The restructuring, Korhonen said, is bringing some cost benefits this year and additional cost savings in the coming years. She did not elaborate further.

"It's good to remember that we are the most profitable tire manufacturer… So there are no huge savings opportunities in other parts of the company," she added.