Konecranes discussing temporary lay-offs of up to 2,000 employees

Crane manufacturer Konecranes has started talks with Finnish works councils to discuss temporary lay-offs of up to 90 days. The talks cover Konecranes’ entire Finnish operation which has some 2,000 employees in total.

Many of Konecranes’ customers are limiting access to their premises, affecting Konecranes’ ability to complete the installation of new equipment and perform certain service operations. Meanwhile, the company’s own manufacturing operations have also been impacted by the significant and increasing measures to contain the pandemic.

‘In starting discussions in Finland, Konecranes seeks to explore all possible temporary measures to adjust costs to the uncertain global business environment. The company cannot estimate at this stage what those measures will ultimately be, but the period of temporary layoffs would be up to 90 days at most’, the company writes in a statement. The manufacturer has already reduced costs across the full scope of its global operations.

Konecranes last week withdrew its guidance for 2020 saying that the demand environment across all segments and regions is deteriorating and that it is too early to make reasoned estimates for this year.

The company had previously issued guidance of 7 to 10% income growth in comparison with its total sales in 2019, which amounted to EUR 3.3 billion.

Author: Tobias Pieffers

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