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Konecranes Announces 2,000 Temporary Layoffs in Finland amid COVID-19 Impact

Konecranes Announces 2,000 Temporary Layoffs in Finland amid COVID-19 Impact
Finnish Konecranes has unveiled intentions to temporarily lay off some 2,000 employees as a result of coronavirus impact on the company’s operations.

The company said it has invited Finnish works council representatives to negotiations regarding the layoffs which would cover all of Konecranes’ Finnish operations.

The company said the layoffs were driven by the business disruption caused by the spread of the novel coronavirus disease.

“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 said.

Konecranes has also been active in reducing costs across the full scope of the company’s global operations.

Restrictive measures imposed by governments across the world have limited Konecranes’ ability to complete the installation of new equipment and perform certain service operations. Moreover, Konecranes’ own manufacturing operations have been impacted by the significant and increasing measures to contain the pandemic.

Reflecting this development, on March 26 Konecranes updated its demand outlook and withdrew its financial guidance for full-year 2020.

 

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