Wärtsilä Corporation Interim Report q1 2014

Restructuring programmes

On 29 January 2014, Wärtsilä announced plans to realign its organisation to secure future profitability and competitiveness. The Group-wide efficiency programme targets annual savings of EUR 60 million and is expected to lead to a reduction of approximately 1,000 employees globally. The effect of the savings is estimated to materialise fully by the end of 2014. The non-recurring costs related to the restructuring measures will be EUR 50 million, of which EUR 11 million was recognised in 2013 and EUR 6 million during the review period January-March 2014. The remainder of the costs will be recognised during 2014.

In March, Wärtsilä completed the consultation process with employee representatives in Finland. As a result of the negotiations, the redundancy need was confirmed as being 142 permanent employees. Including natural attrition and retirements, the number of job reductions in Finland will be approximately 200. The consultation processes in the other affected countries are currently ongoing.

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