HELSINKI: Nokia Tyres will launch statutory negotiations in its operations in the town of Nokia for possible redundancies estimated at 150 employees. The negotiations will cover Nokia’s entire workforce of around 900 employees.
Deteriorating economic condition and plans to cut tyre production have been cited by the company as the reasons behind the move. Nokia Tyres is planning to reduce production of personal car tyres at Nokia plant and is targeting approximately eight million euros in annual savings.
The company’s second quarter figures released on Friday show revenue declined from around 370 million euros to around 346 million euros. The operating profit fell from just under 91 million euros to around 81 million euros. The company’s business has also been hit by deepened recession in Russian and Central European retail markets.
