Orion cuts 205 jobs
The Finnish company Orion has completed its statutory negotiations. By this, personnel will be reduced by about 205 in Finland.
According to the original estimate, the negotiations could have led to cutting up to 300 jobs. In its financial period of the fourth quarter of 2008, Orion will book a non-recurring charge of preliminarily about EUR 3.9 million relating to the structural rearrangements.
The number of employees at Orion's Espoo site will be reduced via a notice by about 105 persons, in Turku by about 55 and in Kuopio by about 15 persons. The reductions will be implemented mainly in the course of the first half of 2009.
The non-recurring charge of about EUR 3.9 million will be booked in the fourth quarter in 2008 relating to costs of personnel and other expenses caused by the rearrangements. A more exact figure will be proved in the company's financial statements for 2008, which will be published on 6 February 2009.
This charge does not, however, give reason to revisit the latest financial full-year outlook estimate for 2008, according to which the operating profit, excluding non-recurring items, is estimated to grow slightly from 2007. Such non-recurring items include the one-off compensation of EUR 6 million for the termination of the Calcimagon licence agreement in 2007, the patent litigation expenses which for 1-9/2008 were EUR 4.4 million, and the about EUR 3.9 million for the rearrangements in research and development.
