Nokian Tyres announces 260 layoffs

In November, Nokian Tyres plc reported weakening demand for its heavy tires and its intention to scale back production.

Following statutory negotiations, which ended on Dec. 12, Nokian confirmed it will alter the main working pattern for heavy tire production and will temporarily lay off employees.

Around 260 employees will be laid off for a maximum of 12 months, with layoffs taking place during 2012 and the duration for each employee decided upon according to their work tasks and the development of order intake over the course of the year.

The tiremaker reports the layoffs will save the company salary costs of approximately 80 man-years. Part of the adjustment measures will be carried out through pension arrangements.

Nokian’s heavy tire sales produced approximately 8% of the company’s revenue and approximately 5% of the group’s operating result in the first nine months of 2011. (Tyres & Accessories)

Source: Tire Review