Glaston announces layoffs, negative operating result for first quarter
On March 3, 2009, Glaston Finland Oy initiated negotiations in accordance with the Act on Co-operation within Undertakings on adjusting the operations of its Heat Treatment business area to the prevailing market situation. The negotiations have concluded, and Glaston Finland will temporarily lay off 200 employees from its entire workforce, excluding service business, for on average of an additional 10 weeks during 2009, and redundancies for maximum 10 employees, according to a March 17 company release.
As a result of these negotiations and the previous employer-employee co-operation negotiations completed in December 2008, the total temporary layoffs of Glaston Finland's workforce is estimated to be 10-18 weeks, with the exception of service business personnel, and the redundancies to 25 employees, according to the release.
Due to an order intake for the first months of the year falling below expectations and a weak order book, Glaston's operating result for the first quarter of 2009 will be negative, according to another March 17 release.
In a Feb. 10, 2009, release, Glaston stated 2009 net sales would fall short of the 2008 level; based on the weak visibility, the company did not provide an outlook for operating result at that time.
Glaston's interim report for January-March 2009 will be published May 5, 2009.