Finland’s Environmental Institute Syke will dismiss 38 employees and move 11 to part-time work following government-mandated cooperation negotiations. The measures are part of a wider effort to streamline public sector operations ordered by Prime Minister Petteri Orpo’s coalition, directly impacting the agency tasked with leading national environmental research and monitoring.
The final number of job cuts was lower than initially feared, as the negotiations had covered the possibility of up to 80 dismissals and 25 part-time arrangements. Additional savings will come from retirements and the non-renewal of fixed-term contracts. Syke’s total staff is projected to shrink by approximately 100 people by the end of 2028.
Government Efficiency Drive Hits Research
The cuts stem directly from the right-wing coalition government's efficiency program for the public sector for the years 2025 to 2027. The program mandates savings across ministries and agencies, with research institutions like Syke not exempt. Syke’s budget for 2025 is approximately 81 million euros, with about 60 percent coming from external competitive funding and 40 percent from the state budget. The staff reductions and office consolidations are a direct response to the government’s directive to reduce its core operational funding.
Syke’s Director General Leif Schulman acknowledged the difficult human cost in a statement. 'The decisions are humanly heavy,' Schulman said. 'The savings will also have effects on Syke's operations at a time when developing solutions to environmental crises requires investments and there is strong demand for Syke's expertise.' His statement highlights the central paradox of the cuts: reducing capacity at a state research institute during a period of escalating biodiversity loss and climate change impacts.
Union Criticizes Process and Scale
The negotiations concluded with disagreement between management and employee representatives. The public sector union Juko, representing highly educated staff, described the layoffs as substantial. The union had hoped the institute would use temporary layoffs instead of permanent dismissals to achieve the required savings.
Juko's chief shop steward, special advisor Panu Hänninen, criticized the process in the union's release. 'When the end result is that the work of 38 people ends, 11 are moved to part-time, and the tasks of those retiring are left unfilled, the measures presented by the employer do not fulfill the planning and information obligation required by the cooperation law,' Hänninen stated. The YT law, or cooperation law, requires negotiations with staff representatives to mitigate the impacts of personnel changes.
Hänninen also pointed to the increased workload these cuts will create for remaining staff, particularly in research roles bound by strict external funder deadlines and obligations. 'In research work, reducing staff causes additional burden because there are obligations and schedules towards funders that cannot be flexed,' he added.
Operational Impact and Office Consolidation
The reductions affect all of Syke’s functions but are concentrated in support roles such as administration. Beyond personnel, a significant portion of the savings will come from cutting facility costs. All of Syke’s offices across Finland will be moved into shared spaces with other research institutes during 2026 and 2027, consolidating the state's research real estate footprint.
This move to shared spaces, while saving on rent and maintenance, is likely to further disrupt workflows and intra-agency collaboration. Before these cuts, Syke employed about 700 people. The loss of nearly 15 percent of its workforce over the coming years, coupled with the physical relocation of its teams, represents a major operational restructuring. The institute is a key national provider of data on Finland’s lakes, air quality, marine environment, and circular economy, with its research often forming the basis for national policy and EU reporting.
Long-Term Consequences for Finnish Environmental Policy
The long-term implications for Finland’s environmental monitoring and research capacity are a central concern. As an EU member state, Finland has binding reporting obligations on everything from greenhouse gas emissions to habitat conservation status. Syke is the lead agency for much of this data collection and analysis. A reduced workforce risks slowing the pace of national environmental assessment and undermining the evidence base for future policy decisions in Helsinki.
The cuts also come when the EU’s Green Deal agenda is pushing for increased environmental ambition. Finland’s ability to innovate in areas like clean technology, nutrient recycling, and biodiversity protection relies on robust public research. The government’s efficiency drive, while aimed at controlling public debt, is effectively reducing the state’s in-house scientific capacity on environmental issues at a critical juncture.
The final outcome of the negotiations shows the direct impact of the Orpo government’s budgetary policy on a key scientific institution. The debate now shifts to how Syke will maintain its statutory duties and research excellence with fewer resources, and whether the short-term fiscal savings will lead to higher long-term costs for Finland’s environment and its reputation as a green technology leader.
| Category | Initial Negotiation Scope | Finalized Outcome | Additional Reductions by 2028 |
|---|---|---|---|
| Permanent Dismissals | Up to 80 | 38 | ~100 total staff reduction (incl. retirements) |
| Part-Time Arrangements | Up to 25 | 11 | N/A |
| Budget Context (2025) | N/A | 81M EUR total (60% external funding) | State budget portion reduced per government program |