FINLAND -- Valmet is planning to cut about 1,150 staff globally including 395 in Finland, the company said in a press release on Monday.

These reductions will only impact white collar employees.

Valmet has taken the move with the view to save annual cost of about EUR 80 million from the beginning of 2026.

The company will hold negotiation talks with employees and their representatives in several Valmet countries in this regard.

The company assured to provide support to the employees throughout this change.

Valmet plans to create strong business areas, which are responsible for driving the profitability and growth of both capital equipment and related aftermarket services.

These proposed business areas are: Automation Solutions; Flow Control; Pulp, Energy and Circularity; Packaging and Paper; and Tissue.

In addition, to increase efficiency, Valmet also plans to establish a Global Supply unit and renew its corporate functions.

"We expect this to lead to improvements in our key financial metrics, such as organic growth, comparable EBITA and return on capital employed, that have plateaued in the past few years. Furthermore, as the market activity in the pulp and paper industry remains low, we need to make sure we have the right set-up to perform also in a challenging market. Finally, over the past years our overhead costs have been increasing more than our sales and we need to improve the cost efficiency and cost competitiveness of our operations. I am confident that with these changes we will be better positioned for the future," said Valmet's President and Chief Executive Officer Thomas Hinnerskov.

Valmet is currently working on detailing out its renewed strategy which is expected to be communicated by June 5 when the Capital Markets Day is planned to take place. The proposed operating model is planned to be effective as of July 1, 2025.