Stora Enso Negotiates Layoffs and Restructuring at Varkaus Mill

Stora Enso has launched negotiations with employee representatives at its Varkaus mill in Finland, as the company continues to face pressure from weak demand and challenging market conditions. The Varkaus site is a diverse operation producing containerboard, market pulp, sawn and planed wood, laminated veneer lumber, and pellets. However, ongoing macroeconomic and geopolitical uncertainties have weighed heavily on demand for these products, forcing the company to explore production downtime and temporary layoffs. Alongside these short-term measures, Stora Enso is also discussing potential job cuts at the Varkaus site. The move comes as part of broader restructuring efforts designed to improve efficiency and ensure the long-term competitiveness of its business. The company has faced a series of headwinds in recent years, including declining paper demand in Europe, rising energy costs, and global supply chain disruptions. Stora Enso has responded with a series of restructuring programmes across its operations, with the Varkaus mill now under review. Employee consultations are expected to determine the scope of temporary layoffs as well as the scale of any permanent reductions.

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