The Valmet Automotive plant in Uusikaupunki, Finland, is discussing the dismissal of up to 450 people due to the termination of contracts for the production of Mercedes-Benz models - the plant has faced a sharp drop in workload after the departure of the car concern.
According to media reports, the company has already begun negotiations with trade unions and employees about layoff plans: it could be about reducing up to 450 people. The reason is the completion of Mercedes-Benz production programs, in particular the A-class and AMG models, which were previously assembled at the Finnish plant. The company has already tried to optimize costs, but these measures were not enough to compensate for the loss of large orders. The Finnish government is involved in the situation: negotiations are underway with Mercedes-Benz, state support for the region and plans for re-profiling production are being considered.
According to other sources, about a thousand employees may be at risk of dismissal - this is significantly more than the previously announced 450. Valmet Automotive has faced a crisis before: in 2023, similar reductions of up to a thousand people were discussed. Against the background of rising unemployment in Finland (about 9.8% according to Eurostat), such mass layoffs may increase social tension.
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