Glaston Corp. has initiated employee cooperation negotiations regarding possible temporary layoffs at its Finnish locations. The potential layoffs concern all employees in Finland, approximately 180 people. The plan is to achieve the necessary level of adjustment by using temporary layoffs of at most 90 days per employee. Negotiations will begin on March 25, 2020 and will last for up to two weeks. The layoffs are planned to start immediately after the conclusion of the negotiations and will be implemented in stages according to the workload.

Negotiations regarding short time work have also been launched in the company’s German and Swiss units and adjustment measures will be taken in other units according to need. All of the above measures are due to the rapid changes in the business environment caused by the COVID-19 virus and the mobility restrictions caused by the virus, which, in the company’s estimation, will also affect the amount of work involved in certain activities.

“Due to the coronavirus situation, there have been rapid changes in our business environment and, at the same time, restrictions on mobility due to the virus also affect the amount of work involved in certain activities. Changes in demand are difficult to assess at the moment, but by reorganizing work and teleworking, we aim to mitigate potential personnel impacts,” says president and CEO Arto Metsänen.

In addition to the temporary layoffs, Glaston has decided to postpone its annual general meeting, which was originally scheduled to be held on April 2, 2020. The company will announce a new date at a later time. The company also issued a statement that due to current global financial situation and the rapid changes in the company’s business environment, Glaston has withdrawn its guidance for its 2020 outlook. In its outlook the company expected the 2020 comparable EBITA to improve from the 2019 level.

“Due to the weak visibility and high market volatility, Glaston has decided to suspend its outlook for 2020. The company’s aim is to give an update on the outlook once a more reliable estimate on the potential impact can be made,” reads the statement.

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