Finnish renewable fuel producer Neste is to cut 510 jobs as part of the company’s efforts to save approximately €65 million ($71m) in operating costs.
The layoffs, which will affect 370 people in Finland, are the result of a ‘very challenging’ market environment, the company said.
In response, Neste said it is simplifying its operating model, enhancing internal efficiency, and focusing on core operations to improve efficiency and profitability.
“Our current market environment is very challenging and financial performance unsatisfactory,” said Neste president and chief executive Heikki Malinen.
“While decisions that affect our employees are difficult, we must take action on many fronts to improve our profitability and cost-competitiveness of our operations. We will support our employees in many different ways in this situation.”
Improvement targets
Neste is targeting a total of €350m ($382m) EBITDA run rate improvement by the end of 2026, as part of its performance improvement programme.
Of this, €250m ($273m) will be from operational costs, it said.
The company refines waste, residues and other renewable raw materials into renewable fuels at its refineries located on three continents.
Neste’s annual renewable fuels production capacity is set to increase to 6.8 million tonnes in 2027.
In December, it introduced a co-processed renewable feedstock that it claims has a smaller carbon footprint than conventional fossil feedstock commonly used in the chemicals industry.
