Finnish tire manufacturer Nokian Tires has initiated change negotiations affecting approximately 1,700 professional staff globally. The company announced the move in a Tuesday press release.
The negotiations may lead to approximately 80 job cuts worldwide. About 55 of these positions could be located in Finland according to company estimates.
Additionally, the company plans temporary layoffs for roughly 650 workers at its Nokia factory in Pirkanmaa, Finland. These layoffs would extend through next year's end. The facility produces summer tires, winter tires, and heavy tires for all company market areas.
Nokian Tires employed about 4,400 people worldwide at September's end. Finland accounted for 2,045 of these workers.
The company states these restructuring talks aim to improve financial performance and operational efficiency.
Despite launching workforce reductions, Nokian Tires reported strong third quarter results on Tuesday. Comparable currency revenue grew nearly 11% year-over-year to approximately €344 million.
Operating profit improved dramatically to nearly €22 million. This compares to just over €4 million during the same period last year.
CEO Paolo Pompei called the quarter strong for the company. He said in the announcement that operating profit improved significantly despite market uncertainties and weak development.
Pompei noted Nokian Tires has accelerated actions to enhance financial performance. He stated ongoing operational measures have improved efficiency and productivity throughout the organization.
Investors welcomed Nokian Tires' news positively on Tuesday. The company's share price rose approximately 8% in Helsinki afternoon trading.
The simultaneous job cuts and strong earnings create a complex picture of a company balancing workforce stability against financial performance in challenging market conditions.